Concurrent with conducting a robust M&A process for the company, Greif & Co. also explored interim financing alternatives to best position the company for potential growth opportunities and serve as a bridge to a potential sale transaction. Greif & Co. determined that Boone’s growth was constrained by its bank financing which provided sufficient capital to fund day-to-day operations but no financing for the Company to be able to implement its attractive key growth initiatives. In our marketing process, we highlighted the key strengths of the company that set it apart from the crowd: leading retail market position, growing commercial segment leadership, patented products that provide high barriers to entry, outstanding customer relationships, a compelling financial performance, an efficient manufacturing facility, and high quality products made in the USA. Additionally, we highlighted the company’s attractive growth opportunities spanning complementary product and market segments, international markets, continued product innovations and development, and consolidation opportunities.

As a prelude to a successful sell-side transaction, Greif & Co. initiated, arranged and negotiated a $31-million growth financing package including a new $20-million revolving credit facility, $9-million term loan and $2-million common equity investment. The financing was completed at attractive and flexible terms. This financing served as a bridge to the company’s sale to ACCO World Corporation, a subsidiary of Fortune Brands, Inc., which was completed six months after the financing as Boone was beginning to reap early returns from its investment in growth initiatives.