Reunion Industries in the Section 363 sale of CP Industries to Everest Kanto Cylinder
Lincoln International LLC (through its wholly-owned affiliate Lincoln International Advisors LLC), a global mid-market investment bank, today announced the sale of CP Industries (“CPI” or the “Company”), a division of Pittsburgh-based holding company Reunion Industries, Inc. (OTC: RUNI). The business and substantially all of the assets and liabilities that comprise CPI were sold to subsidiaries of Everest Kanto Cylinder Ltd. of Mumbai, India (BOM: 532684) for cash consideration of $66.3 million, subject to a post-closing adjustment. Lincoln International acted as the exclusive financial advisor to Reunion Industries.
On November 26, 2007, Reunion Industries filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code and since has operated as debtor and debtor-in-possession. The sale of CPI was completed in accordance with Section 363 of the U.S. Bankruptcy Code and has been approved by the U.S. Bankruptcy Court for the District of Connecticut, Bridgeport division. The sale proceeds will be used to pay down debt.
Headquartered in McKeesport, Pennsylvania, CPI is the world’s leading manufacturer and supplier of large seamless pressure vessels used for the containment and transportation of highly pressurized industrial gases. The Company’s products are used in the attractive industrial and specialty gas, offshore oil and natural gas drilling, military and aerospace end markets.
Lincoln International worked closely with Reunion Industries to craft a comprehensive global marketing strategy which involved contacting more than 200 potential acquirers on four continents, coordinating the due diligence process, selecting a stalking horse bidder and assisting with the negotiation of the purchase agreement and bidding procedures. The sale was completed in an expedited timeframe, with multiple parties submitting final offers approximately 60 days after Lincoln International’s engagement.
“Lincoln’s intimate knowledge of sale transactions in a bankruptcy process combined with its extensive experience in selling industrial businesses to international strategic acquirers proved invaluable,” said Kimball Bradley, President, Reunion Industries. “They quickly created a highly competitive, disciplined sale process that produced a positive outcome in the best interests of everyone connected with the Company, including its employees, customers, creditors and shareholders.”
Reunion is the third company that Lincoln International has advised on a bankruptcy-related transaction this year, and the 23rd U.S. company it has sold to a foreign acquirer in the last twelve months.
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