Provided fairness opinion on merger of industrial technology companies

Provided fairness opinion on merger of industrial technology companies

A middle-market private equity firm with deep experience in the industrial technology sector identified a mutually beneficial opportunity to combine two of its portfolio companies that operate in the same industry. The merging of the two companies, which are both providers of sophisticated properties testing and measurement instruments, would unlock numerous synergies, including benefits from unified marketing/branding and SG&A (selling, general and administrative expenses) resources and significant customer and product expansion opportunities.

In connection with the transaction, Stout was engaged to provide a fairness opinion to the board of directors of the target company. Stout’s team performed independent financial analyses regarding the business and the proposed transaction terms and presented its findings to the board. Ultimately, the private equity firm completed the transaction, creating an industry leader serving a mix of end markets including medical and pharma, automotive, packaging, electrical and electronics, food and beverage, textiles, aerospace and defense, and consumer goods.