(November 14, 2016) — FourBridges Capital Advisors today announced that Southeastern Tool & Design has received a significant investment from Alderman Holdings LLC. FourBridges — an investment banking firm that helps business owners sell their companies, refinance debt or access growth capital — acted as exclusive advisor to Southeastern Tool.
Based in Chattanooga, Tenn., Southeastern Tool provides machining, engineering and automation solutions to top-tier manufacturers in the automotive, flooring, power generation and metal stamping industries. Originally established as a one-customer outsourced machine shop in 1980, the company was purchased by CEO and owner Lou Ziebold in 2010. Ziebold repositioned it as a client-focused, technology-driven provider of solutions that help companies maximize production and enhance manufacturing processes.
“After investing in people and technology over the last six years and acquiring a diversified customer base, I felt the company was at an inflection point. I wanted to find an investor that could help me take the company to the next level,” Ziebold said. “I also wanted partial liquidity for myself and for the buyout of a partner who was retiring. When I contacted FourBridges, they suggested a strategy of finding a ‘value-added’ investor that would share my vision for Southeastern Tool. FourBridges helped us position our company in the best light, identified quality parties to approach and ultimately, negotiated a deal with Alderman Holdings."
FourBridges analyzed Southeastern Tool's financial statements, developed a forecast and compiled a Confidential Information Memorandum that told the company's "story" to potential partners. A diverse universe of private equity groups, strategic investors and family offices were contacted, and eventually, Alderman Holdings was identified as the best fit.
A Chattanooga-based partnership, Alderman Holdings acquires or invests in companies facing an ownership transition. The group targets mostly mature, traditional companies with quality leadership teams and a proven product or service. Alderman holds its investments for the long term and takes a proactive operational approach to growing companies and creating value. Geographically, they focus on Chattanooga and the surrounding region.
“Lou Ziebold and his company represent the true 'sweet spot' that FourBridges serves,” said Andy Stockett, managing director of FourBridges. “We enjoy working with business owners and entrepreneurs who have built quality businesses and are now looking to sell the company — or, as in Lou’s case, find a partner that can bring capital and operating expertise to the table."