A middle-market private equity firm with deep experience in the medical and industrial industries identified one of its portfolio companies as a target for a potential continuation vehicle transaction. The company, a manufacturer and distributor of industrial filtration mediums, was a seasoned investment that the private equity firm believed to have consolidation and growth opportunities to pursue under its ownership.

Stout was engaged to provide fairness opinions to the fund general partner and the board of directors in connection with the proposed transaction. Stout’s team performed independent financial analyses regarding the business and proposed transaction terms and presented its findings to the general partner. The private equity firm completed the transaction with the continuation vehicle. Additionally, the existing platform company also acquired a competing provider of filtration products with financing support from the newly formed continuation vehicle.