Industry/Sector: Inland Marine Transportation

Deal Type: M&A – Sell Side Advisory

FourBridges Team: Andy Stockett, Chris Rowe

Client Profile: Memphis-based Waxler Transportation Company and related entities operated a fleet of tow boats and barges on the Mississippi and Ohio Rivers, as well as the Gulf Coast. This third-generation family business transported primarily petroleum products and has been in business for over 50 years.

Client Objectives: The Waxler family engaged Andy Stockett and Chris Rowe to evaluate a range of strategic alternatives, including a total recapitalization, the refinancing Waxleof senior debt, placement of subordinated debt or sale of the company to a financial or strategic buyer. Objectives included achieving shareholder liquidity, a continued role for senior management, providing opportunities for employees and ensuring continued service to their long-term customers. With these objectives in mind, and based upon an analysis of current industry conditions and trends, the team advised the owners to pursue a sale to a strategic buyer.

The Challenge: Assets were owned by three separate companies and individuals. FourBridges professionals leveraged their operating experience as CFOs as well as their investment banking and transaction expertise to position the company in its most favorable light. Rather than focus solely on historical financials, the team constructed an analysis of the income generating potential of the assets, on a fully deployed basis. By incorporating an industry trend of increasing day rates, this detailed analysis was key to maximizing value.

The Process: FourBridges professionals focused primarily on conducting a targeted sales process and negotiating the ultimate deal terms. However, they also assisted the Waxlers in selecting a corporate securities attorney and provided a high level of analytical support to the CFO during the due diligence and closing stages. Their systematic approach is designed to identify and address key issues early on to minimize surprises and their potentially negative impact on ultimate shareholder value.

The Result: The Waxlers sold 100% of their operating assets and received stock and cash at closing that greatly exceeded their initial expectations. Senior management retained their roles–operating Waxler Transportation Company as part of Seacor’s Inland Marine Division. This new platform will further enhance the growth of the company’s petroleum transportation business.

Past performance is no guarantee of future results, and there can be no guarantee that these results will be duplicated in the future. Any testimonials presented herein may not be representative of the experience of other clients.

“Engaging investment bankers who have also been in my chair as a CFO was a key to maximizing the valuation This level of experience was helpful to me personally They knew what data was important, where to get it and how to position it to the buyers.”- Alan Waxler, CFO