Cox Transportation Services, Ashland, Virginia

Based near Richmond, VA, Cox Transportation Services, Inc. and Cox Truck Brokerage (collectively “Cox” or the “Company”) specialize in transporting time-sensitive full truckload freight on a local, regional, and national basis for a variety of customers.  The Company was founded by John Cox in 1982. John Cox had gradually reduced his involvement with the business, turning over responsibilities to his president, Jay Smith. Eventually, John Cox wanted to realize the full liquidity on his 100% ownership and agreed to sell the Company to Jay Smith as a management buyout.  During early 2014, Capital One Bank learned of the opportunity and recommended Tecum Capital Partners to assist, given the two financial firms had a great working relationship from another transaction. Tecum principals met with Jay Smith and Capital One and helped structure the management buyout transaction. Tecum, Capital One and Jay Smith partnered together and provided the necessary capital to facilitate the transaction, which closed September, 2014.  Marriott & Co, an investment banking group based in Virginia advised Mr. Smith on the deal, allowing him to earn controlling interest of the business. The overall transaction was a win-win for everyone.  After nearly three years of good performance, Tecum Capital’s debt and equity positions were successfully recapitalized. With this recapitalization, Tecum realized a successful return for its investors and Jay Smith was able to obtain full undiluted ownership, while Capital One remained involved as the senior lender.

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Viking Plastics, Corry, Pennsylvania

The C.E.O. of this Corry-based plastic injection molder contacted Tecum Capital Corporation to provide a portion of the funding necessary to purchase this company from its corporate parent, a U.S.-based plastics conglomerate.

Actions

  • The mezzanine debt provided by Tecum Capital completed the funding raise needed to consummate the acquisition. This, along with a substantial investment by management, allowed the C.E.O. to take full control of his business unit.

Results

  • Viking Plastics has successfully implemented several process improvement and profitability enhancement strategies since the acquisition, which have bolstered performance.
  • The results-driven C.E.O. continues to provide leadership and has helped his team of highly motivated individuals uncover new opportunities for the company to diversify its revenue base.
  • Tecum Capital continues to provide strategic support by introducing additional revenue opportunities to the company.

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B.J. Alan Company, Inc. (Phantom Fireworks), Youngstown, Ohio

The founder and C.E.O. of this Youngstown, Ohio–based importer and wholesaler of consumer fireworks utilized Tecum Capital Corporation to provide the funding necessary to assist in a long-term growth strategy.

Actions

  • B.J. Alan Company, Inc., operating under the well-known Phantom Fireworks brand name, has expanded to become the second-largest importer and wholesaler of consumer fireworks in the nation and the largest operator of permanent retail fireworks showrooms in the United States.
  • Tecum Capital Corporation’s financing provided an effective injection of growth capital to continue to build on this position of strength and leadership through the use of a mezzanine loan, in this instance with a two to four year time horizon.

Results

  • Phantom Fireworks continues its growth strategy, and today is well-capitalized to seize market opportunities including location expansion, interstate growth and acquisitions.
  • Phantom Fireworks has access to Tecum Capital’s strategic, tactical and financial assistance during this growth phase.
  • Phantom Fireworks continues to be leader in the innovation and sale of consumer fireworks.

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Celtic Healthcare, Inc., Pittsburgh, Pennsylvania

The founder and C.E.O. of this multi-state, comprehensive, Medicare-certified, skilled home healthcare and hospice service organization utilized Tecum Capital Corporation to provide the funding necessary to execute a long-term growth strategy and assist in a key acquisition. Celtic Healthcare is based in Mars, Pennsylvania, located north of Pittsburgh.

Actions

  • Celtic Healthcare had completed three acquisitions in recent years, and the company was seeking the right capital partner to assist in further acquisitions.
  • Celtic Healthcare partnered with Tecum Capital Corporation to continue this growth strategy. Tecum Capital’s cash infusion, in addition to capital provided by a traditional senior lender, was utilized to complete Celtic’s acquisition of Hospice Community Care in Scranton, PA.
  • This acquisition expanded Celtic’s presence into eastern PA and increased its hospice patient base.
  • Tecum Capital’s financing provided an effective injection of acquisition capital to support Celtic’s successful acquisition growth model through the use of a mezzanine loan, in this instance with a four to five year time horizon.

Results

  • Celtic successfully completed the Hospice Community Care acquisition in December of 2010.
  • Celtic now has access to Tecum Capital’s strategic, tactical and financial assistance during the continued execution of their organic and acquisition growth strategy.
  • Celtic continues to seek additional market growth opportunities where it can deliver high-quality home and hospice care health services.

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Innovative Concepts in Entertainment (ICE), Buffalo, New York

The founder and C.E.O. of this Buffalo, NY–based innovator, manufacturer and distributor of coin-operated amusement games utilized Tecum Capital Corporation to provide the funding necessary to repurchase majority ownership of the company.

Actions

  • Tecum Capital Corporation’s financing provided an effective transition of ownership through the use of a mezzanine loan, which served as temporary capital with a three to five year horizon.  This alternative was less costly for Innovative Concepts than an equity partner who would continuously share future profits.
  • The funding provided by Tecum Capital, coupled with traditional lending from a banking partner, created the necessary capital for the founding partner and current management team to regain majority ownership and control by purchasing stock that was owned by a private equity investor.
  • Tecum Capital was able to work with the management team and other various stakeholders to close the management buyout in less than ninety days, despite a relatively complex process.

Results

  • Innovative Concept’s management team has regained independence and ownership of the business while having continued access to Tecum Capital’s strategic, tactical and financial assistance.
  • While working with Tecum Capital, the Innovative Concept’s management team has successfully executed several cost-reducing initiatives and invested more in research and development.
  • Innovative Concepts continues to be a leader in the innovation, manufacturing and distribution of coin-operated amusement games, redemption games, skill games and other amusement games.
  • Tecum Capital successfully exited the investment in November of 2010 when Innovative Concepts, because of profitable operations and decreased leverage, was able to recapitalize the business with traditional senior financing.

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