Griffin Represents Management Team in its Acquisition of Gichner Systems Group, LLC
Gichner, located in York, PA, is a manufacturer of tactical military shelters, containers and subsystems which are used by every branch of the U.S. and European Armed Forces, primarily as mobile operations centers for high-value communications and IT equipment. Management intends to expand Gichner’s current product line and thereby diversify its customer base among new military and commercial markets.
Management wanted to purchase Gichner from Dominion Capital, Inc., a subsidiary of Dominion Resources, Inc. (NYSE: D), one of the nation’s largest producers of energy. While Dominion was receptive to the concept, management did not have the financial resources to purchase the Company on their own and therefore faced a short time frame in which to structure the transaction and raise the third-party capital necessary to fund the acquisition.
Griffin quickly assessed the viability of the management buyout and assisted management in structuring and negotiating the terms of the Gichner acquisition; advised management on the appropriate capital structure for the acquisition; and managed a competitive capital raising process to privately place the senior debt, subordinated debt and private equity capital required to fund the acquisition. Management’s capital partners include National Penn Bank and KNBT Bancorp as senior lenders, Argosy Investment Partners as lead subordinated debt lender and Altus Capital Partners and Dunrath Capital as lead private equity investors.