Related Professionals
CDM Electronics, Inc. (“CDM”) specializes in the distribution and manufacturing of electronic interconnect products and cable assemblies, and provides contract manufacturing services. CDM’s customers include some of the world’s best known military contractors, aerospace manufacturers, communication and industrial equipment makers, and alternative energy providers. Founded 25 years ago and based in Turnersville, NJ, CDM has expanded rapidly since then with an additional manufacturing facility in New Jersey, as well as sales offices in Texas and California.
Situation
CDM was presented with the opportunity to acquire a competitor, Custom Cable Solutions, Inc. (“CCSI”), located in Salisbury, MD. CCSI is a manufacturer of new and custom electronic interconnection products, principally cable harnesses and wiring systems, for aircraft, ground support vehicles, transportation and telecommunications, for both military and commercial markets. The potential acquisition presented CDM with an attractive opportunity to vertically integrate its manufacturing operations, expand its customer base and product lines, materially grow its business and achieve meaningful synergies via consolidation. That said, CDM had never attempted an acquisition before and was uncomfortable proceeding without an experienced M&A advisor.
Solution
CDM had a prior relationship with Griffin and elected to engage Griffin to act as buy-side financial advisor for the acquisition. Griffin advised CDM on various aspects of the acquisition, including valuation, structuring, financial analysis and quantification of synergies. In addition, Griffin served as the primary interface with CCSI’s financial advisor and acted as CDM’s lead negotiator. CDM subsequently closed the acquisition of CCSI in July 2018.
For more information on this transaction, contact John A. Lee, Senior Managing Director, at 610.205.6106. For more information on Griffin’s services in general, contact any one of our investment banking professionals.
