Piezoelectric Products West
Piezo West, based in Fullerton, California, a division of Gulton Industries, Inc., a NYSE listed company, is a developer and manufacturer of piezoelectric ceramics for the transfer of electrical energy into mechanical motion and vice versa. Its systems are primarily used by the US government for defense oriented applications ranging from warhead fuzing and active and passive sonar systems.
EDO Corporation, a NYSE listed company based in New York , New York , provides military products and professional services to the US and allied governments, and their prime defense contractors.
OEM Capital was engaged to assist Gulton Industries, Inc. in finding a buyer for its Piezo West business. The business no longer fit with the parent’s strategic objective to move away from a process oriented business. With our advice, the division brought its expenses in line with revenues and we initiated a competitive sale process.
OEM Capital’s presentation of the company’s value and our knowledge of the industry secured several interested parties. When we were approached by a direct competitor, we devised a due diligence program which did not disclose proprietary information prior to closing. Gulton Industries, Inc. received a premium price for its business and was relieved of its long term contract liabilities.
Our success with Gulton Industries, Inc. illustrates that, whether a business is healthy 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.