Belgrave Industries, Inc.

Belgrave Industries, Inc.

Belgrave Industries

Belgrave Industries, Inc., a closely held company with annual revenues of approximately US$18 million is based in El Monte, California with operations throughout the Greater Los Angeles area. The company is engaged in the development of marine electronics, electronics parts distribution software, plastics molding and parts remanufacturing services.

OEM Capital was asked to assist Belgrave Industries, Inc. in securing acquisition financing to purchase certain assets of Cetec Corporation located in Southern California. We had previously identified Cetec Corporation’s audio business as an excellent strategic fit for Mark IV lndustries, Inc.’s EV subsidiary and worked as the financial advisor to Mark IV Industries, Inc. to assist it in the purchase of Cetec Corporation. However, Mark IV Industries, Inc. did not wish to retain those businesses for which EV did not have a strategic interest.

The management of Mark IV lndustries, Inc. encouraged us to form a private equity group to purchase the unwanted assets.

We secured operating management, helped it prepare a financial plan that stressed the potential of each of the company’s businesses and, along with marketing materials, approached investors and lenders.

OEM Capital’s presentation of the company’s business prospects to a number of investors and lenders secured the required funding from Security Pacific Bank, Norwood Venture Corporation, several private investors and Mark IV Industries, Inc. In addition, our principals sponsored and co-invested in the transaction. The financing allowed Belgrave Industries, Inc. to close on the transaction in a timely manner while providing its operations with working capital.

Our success with Belgrave lndustries, Inc. illustrates that, whether a business is healthy, under performing or distressed, superior valuations can be realized for the selling shareholders by a well-executed approach to a sale or divestiture by merger and acquisition professionals who are knowledgeable about the industry and the intentions of its participants.

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