VMC Case Study

Management Buyout Results in Team Owning Majority Stake

Overview
  • VMC purchased from Aeroflex, Inc., was a leader in providing vibration isolation and seismic control solutions to the industrial, military and construction markets
  • Purchased for $8.6 million in 2005 by Management and CCCM
  • Management maintained control of Board and majority ownership with a $1 million investment alongside $3 million mezzanine investment
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Results
  • Revitalized management team and workforce produced dramatic improvements
  • Sales and ebitda grew more than 250% within three years
  • Acquired competitor Amber Booth in 2007
  • Management recapitalized the mezzanine debt and equity with Fifth-Third Bancorp in 2009 at an 8x markup in equity value
  • VMC makes strategic acquisitions in 2015; AAC of New York and Dynamic Control Labs in Reno, NV establishing leadership in online sales and testing and certification for compliance with the International Building Code
  • $32 million minority recapitalization completed in May 2015 in conjunction with new partner Seacoast Capital and East West Bank refinancing the Senior Debt