Southwest Securities, Inc. Served as Exclusive Financial Advisor to IntelliPack
SWS Investment Bankers Arranged Recent Sale of IntelliPack to Pregis Corporation
DALLAS, March 16 /PRNewswire-FirstCall/ -- Southwest Securities, Inc. (a subsidiary of SWS Group, Inc., NYSE: SWS) served as the exclusive financial advisor for IntelliPack, Inc. in connection with the recent sale of IntelliPack to Pregis Corporation.
Based in Tulsa, Okla., IntelliPack is a leading provider of foam-in-place packaging systems. IntelliPack's former shareholders included private equity firms First Capital Group and Red River Ventures, as well as management. Pregis Corporation, a portfolio company of New York-based private equity firm AEA Investors LP, is a leading global provider of innovative protective and flexible packaging solutions, food service packaging and hospital supply products.
"By integrating IntelliPack's talented people, cutting-edge technology and service platform into the Pregis portfolio, the company will be in a unique position to increase value to its customers through a more extensive offering," said Kevin Baudhuin, president, Pregis Protective Packaging North America, as highlighted in Pregis' press release announcing the transaction. "IntelliPack's proven track record of customer focus and growth is a perfect complement to Pregis' business philosophy."
This transaction represented the second completed M&A advisory assignment for Southwest Securities in 2010, making Southwest Securities the most active middle market M&A advisor based in Texas this year.
"We are proud to have represented our client, IntelliPack, in its successful sale to Pregis," said David Tomizuka, Southwest Securities' managing director. Mr. Tomizuka said the transaction moved quickly, with an initial letter of intent executed in December, extensive due diligence requirements during the holiday season, and final documentation and closing all completed by mid-February. "The assignment required our team to facilitate a fast-track process that included detailed multilateral negotiations between sophisticated private equity firms on both sides of the deal continuing right up to the closing," Mr. Tomizuka explained.
Bruce Duty, managing general partner at Red River Ventures, one of the two private equity firms that exited their investment in IntelliPack, added: "The SWS team was very professional, capable, patient and diligent in shepherding all of us on both sides to a successful closing. It was clear from our initial meetings with SWS that they were the right fit for us; their quality of personnel and ability to tackle challenging structuring issues confirmed our decision and ultimately led to a result our shareholders are pleased with." SWS is an investor in Red River.
"This is the second major client sell-side success story within the past month for our group involving management-owned businesses and private equity firms, and is proof of our commitment to being the preferred middle market M&A advisory business in our region, even while difficult economic conditions persist," said Jeff Singer, executive vice president and head of Corporate Finance at SWS Group. "In each case, our clients achieved excellent valuations; their results demonstrate that a solid process managed by a capable advisor provides the best opportunity for good companies and good management teams to achieve their value creation objectives."
Southwest Securities, Inc., a member of NYSE, FINRA and SIPC, provides securities brokerage, investment banking and securities clearing services to a broad range of individual, corporate, public and industry clients. The firm is a wholly owned subsidiary of SWS Group, Inc. (NYSE: SWS), a financial services holding company whose stock is listed and traded on the New York Stock Exchange under the symbol, SWS.
SOURCE Southwest Securities, Inc.
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