mescoTombstone
  • Location: Flint, MI
  • Industry: Industrials

Situation

  • Manufacturers Equipment and Supply Company (“Mesco” or the “Company”), headquartered in Flint, Michigan, is a leading specialized material logistics company primarily serving the automotive industry.
  • There were two main drivers for the sale of the Company:
  • The Company’s management was seeking to expand internationally, an objective that could be achieved by merging with a buyer experienced in both international operations and the automotive industry.
  • The existing shareholders of this family-owned business desired liquidity for estate planning purposes.

Solution

  • Amherst was engaged by Mesco to secure a buyer that would provide global expansion expertise, growth capital and economies of scale. In addition, Amherst was charged with securing an appropriate value for the Company under acceptable terms and conditions.

Result

  • Leveraging the firm’s deep knowledge of the automotive industry and its robust network of relationships, Amherst prepared a comprehensive Confidential Information Memorandum articulating the Company’s unique attributes and successfully marketed Mesco to a targeted universe of strategic and financial buyers.
  • TVS Logistics Services, Ltd., a unit of the India-based TVS Group (a $6 billion annual revenue automotive conglomerate), was identified as a buyer prospect that uniquely fit Mesco’s criteria.
  • The purchase of Mesco provides TVS with numerous synergies including: highly complementary service offerings, abundant cross-selling opportunities and a strong management team to execute its growth plans in North America.
MarketIQ
Perspectives on Industry News & Trends: