Closing Date: 11/30/2012
Acquired by Alkon Corporation | Industry: Hydraulic Pumps and Cylinders
Star Hydraulics (“Star”) designed, manufactured and sold hydraulic hand pumps and cylinders through distribution and direct to OEM customers and end-users throughout the U.S. Star was one of a few manufacturers of hand pumps, specializing in heavy-duty and stainless steel pumps. Star’s owner passed away and Cross Keys Capital (“Cross Keys”) was hired by the estate to sell the business and preferably the real estate.
After the owner passed away, Star was being run by one of the owner’s daughters who would come into town every other week to oversee the financial and business aspects of the business. There was a general manager who handled production. The daughter needed someone who could guide her throughout the sale process and also provide business advice during the interim operating period. We did just that.
The family preferred to sell to a company who would keep the business and employees intact. They also preferred to sell to a buyer who would also acquire the real estate. We ended up with seven offers and the best offer was from a family-owned business in Ohio who wanted to grow through acquisition. They also happened to be one of the highest bidders. The buyer put in a general manager, moved some of their equipment to Star, and completed a smooth business transition.
During the sale process, it was discovered that the real estate had previously gone through an environmental soil clean up but that could still be other issues that were “contained” by the building foundation. As long as the building foundation remained, the issues would be contained and no action was deemed necessary. The buyer and seller agreed to a discount on the real estate price in order for the buyer to buy the real estate as is.