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Clayton Capital Partners:


Retained Seller
Engagements



  • CO190:  Regional Staffing Firm Offering Job Placement and Labor Management Services - $17.9MM Revenue.


  • CO194:  Regional supplier of Team Sporting Goods Equipment - $29.5MM Revenue.


  • CO195: Manufacturer of High-End, Prefabricated Wood Structures with a nationwide market presence - $14.4MM Revenue.


  • CO198: Private Aviation firm providing Aircraft Management and Charter Services for private and corporate aircraft- $14MM Revenue - $1.5MM EBITDA.


  • CO200: A leading wholesaler of Electrical Products with in-house Design and Engineering capabilities - $70.1 MM Revenue.


  • CO202: Raising $10MM in Junior Capital on $7MM EBITDA.


    Retained Acquisition
    Searches


  • CO62: Specialty Contractor Seeking add-on Acquisitions.


  • CO138: Kansas City-based Private Investor Seeking to Acquire companies Headquartered within 50 mile radius of Kansas City.


  • CO161: Leading Provider of Service Station Fuel Delivery Systems Seeking add-on Acquisitions with revenues of up to $10MM.


  • CO171: Medical Device Manufacturer with strong International Position in Disability and Mobility sector Seeking add-on Acquisitions.


  • CO199: Experienced and active Private Equity Investor Seeking Acquisitions of companies providing Nondestructive Testing Services, Energy Efficiency Improvement Services, Infrastructure Support Services, Services to Healthcare Payors/Payers, and/or On-Line Training Services, with revenues up to $150MM.


  • CO201: Manufacturer of complex, engineered components for the Aerospace, Defense, First Response, Safety, and Medical markets seeking acquisitions with revenues up to $15M. Aviation control systems and/or products regulating the flow of oxygen are of particular interest.


  • CO203: Privately held manufacturer and marketer of highly recognized Laundry, Household Cleaning, Air Care and Lawn & Garden branded products Seeking Acquisitions with revenues up to $15MM.

    deal team

    ST. LOUIS, MO
    Clayton Capital Partners is pleased to announce that its client, Evale Foods, provided equity capital to Hail Merry, a Texas-based company.

    THE COMPANY
    Hail Merry (www.hailmerry.com), based in Dallas, TX, is an innovative manufacturer of raw, vegan and gluten-free food products.

    THE BUYER
    Evale Food Group (www.evalefoodgroup.com), based in St. Louis, MO, is comprised of accomplished entrepreneurs, senior level executives and individuals with a commitment to providing healthy food choices to the consumer marketplace.

    ST. LOUIS, MO
    Clayton Capital Partners is pleased to announce the sale of its client, Mack Hils, Inc. to a private buyer.

    THE SELLER
    Mack Hils, Inc. (www.mackhils.com), based in Moberly, MO, is a leading custom metal fabrication & precision machining firm serving the semi-conductor, heavy trucking, food service, agriculture & homeland security industries.

    THE BUYER
    A private Equity Group.

    ST. LOUIS, MO
    Clayton Capital Partners is pleased to announce the sale of its client, Mid Continent Nail Corporation to Deacero, S.A. de C.V.

    THE COMPANY
    Mid Continent Nail Corporation (www.magnumfasteners.com), based in Poplar Bluff, MO, is a leading manufacturer of industrial and construction fasteners.

    THE BUYER
    Deacero, S.A. de C.V. (www.deacero.com), with a presence in over 20 countries, is a world leader in the production and distribution of steel wire products.

    ST. LOUIS, MO
    Clayton Capital Partners is pleased to announce the purchase of certain assets of GT Midwest, related to the production and distribution of petroleum transfer products, by its client, Husky.

    THE SELLER
    GT Sales & Manufacturing (www.gtmidwest.com ), based in Kansas City, MO, is an employee-owned manufacturer and distributor of a wide range of products and materials for industry and commerce.

    THE BUYER
    Husky Corporation (www.husky.com), based in Pacific, MO, is a leading manufacturer of high-quality nozzles, swivels, safe-t-breaks, and accessories for service station fuel delivery systems.

    ST. LOUIS, MO
    Clayton Capital Partners is pleased to announce the sale of its client, Alliance Medical, Inc. to Bound Tree Medical, LLC.

    THE SELLER
    Alliance Medical, LLC (www.allmed.com), based in Jefferson City, MO, is a leader in the distribution of emergency medical services (EMS) products, supplies, equipment and clothing.

    THE BUYER
    Bound Tree Medical, LLC (www.boundtree.com), is a leading provider of emergency medical supplies and equipment to the pre-hospital market.

    deal team
    By Craig Herron, CFA, Principal, Clayton Capital Partners

    Your Business is About to Decline in Value –
    What are You Going to Do?

    In the Next Three Months:
    - Your business will decline in value by over 10%.
    - Just to breakeven, you will have to grow the value by almost 12%.
    - If its distributions are taxed as dividends, after-tax proceeds will decline by 33%

    The tax rates implemented under the Bush Administration are due to expire at the end of 2012 and the Obamacare surtax on investment income is set to begin in 2013. Recent statements by leading Democrats imply that they will not extend the Bush tax cuts for high net worth individuals under any circumstances. The implications on rates are significant:

      Current 2013
    Capital Gains 15.0% 23.8%
    Dividends 15.0% 43.4%

    C Corporations that pay out dividends will see the most significant impact. However, S Corporations are not immune, particularly if the owner is thinking about selling a portion of the business to children or employees. The sale will be deemed a dividend for tax purposes (not capital gains) unless it meets certain criteria. Please consult a tax professional to determine the impact of these changes on your situation.

    What Can You Do About It?
    There are a number of alternatives open to privately held businesses.

    - Sale – If you are thinking about getting out in the next 3 or 4 years anyway, you may want to consider selling now to ensure favorable treatment. Many buyers, particularly financial buyers, want to retain your services for that length of time anyway, so selling does not have to equal walking away.

    - Recapitalization – Don't want to sell but interested in sheltering your hard earned value from increased taxes? Pay yourself that dividend now before rates go up. A recapitalization can allow you to take a significant amount of money off the table now. It can also be a valuable estate planning tool for transferring the business to children or employees.

    - Transfer to Children or Employees – If you think this is the appropriate exit plan for you, now is a good time to explore at least a partial transfer.

    - Buy-out Minority Shareholders – Do you have other shareholders that are not active in the business? Now may be a good time to consider buying them out. They will benefit from the advantageous capital gains treatment and you could save taxes through the deductible interest expense on the debt used to purchase their shares.

    Clayton Capital Partners can assist you in meeting your goals. Time is running out! While it may already be too late to go through an auction process, we have relationships with many private equity firms that are committed to getting transactions done quickly.

    If you would like to explore if one of these alternatives is appropriate for your business, please contact Craig Herron at (314) 725-9939 x 528 or cherron@claytoncapitalpartners.com.



    Craig M. Herron
    CFA, Principal

    Mr. Herron began his investment-banking career with Dean Witter Reynolds and subsequently did transaction work for Anheuser Busch International. Craig received his Master of Business Administration from the Darden School of Business and is a Chartered Financial Analyst.

    deal team


    St. Louis Business Journal

    VOL 32., NO. 52

    stlouis.bizjournals.com

    August 17-23, 2012

    Clayton Capital eyes $300 million
    from 15 deals by end of 2012

    Clayton Capital Partners, an investment banking firm that specializes in mergers and acquisitions, is on track to close up to $300 million worth of deals by the end of the year.

    So far this year, Clayton Capital has closed six deals, ahead of pace compared with the same time last year, and the firm expects to have wrapped up 15 deals by the end of 2012, according to Kevin Short, managing partner and chief executive.

    Clayton Capital closed 11 deals last year that totaled under $300 million.

    To date this year, Clayton Capital has added four new employees and is looking to hire an additional analyst and director by the end of 2012. Currently, the firm employs 32 people.

    Short, who founded Clayton Capital in 2001 and is the majority owner, said the uptick in business was a product of the recovering economy. "There is a lot of cash on buyers' balance sheets," he said. "That factor equates to us continuing to be even busier."


     

    Phil Stanton, manager of the corporate practice group at law firm Greensfelder, Hemker & Gale, said mergers and acquisition activity in the middle market — companies with market caps between $20 million and $250 million — has increased over the past few years due to a number of factors. "Despite how the economy may or may not be doing, valuations for businesses in the past six months to a year have been higher than they have been since 2008," he said. "Businesses will receive better offers."

    Stanton also said uncertainty over tax laws in 2013 is a driver for families looking to sell middle market companies before the end of the year.

    Some of the deals Clayton Capital recently brokered include that of Evale Food Group, a St. Louis-based investment group, which purchased an interest in Dallas-based Hail Merry, manufacturer of raw, vegan and gluten-free food products. Evale is led by David Hoffmann; his son, Garrett Hoffmann; and his daughter, Tricia Wagner. Short declined to disclose details.

     

    Another recent transaction that Clayton Capital closed was the sale of Mack Hils Inc., a metal fabrication and precision machining company based in Moberly, Mo. The family-owned company was purchased by a private equity group.

    While Short said he couldn't give specifics on the Mack Hils deal and other recent closings, he said most of the companies Clayton Capital brokers sales for average about $50 million in annual revenue.

    Short said Clayton Capital was currently exploring potential deals for clients, some of whom are $300 million-dollar companies in the medical device and construction industry. "Our expectations for business in 2013 are higher," he said. "We're optimistic for an abundance of buyers."


    Binns, Evan. "Clayton Capital eyes $300 million from 15 deals by end of 2012." St. Louis Business Journal 17 Aug. 2012. <http://www.bizjournals.com/
    stlouis/printedition/2012/08/17/
    clayton-capital-eyes-300-million-from.html>

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