Done Deals

Spire Methode Electronics

Spire Corporation, a publicly held company (Nasdaq: SPIR) based in Bedford, Massachusetts is a technology leader in the manufacturing of compound semiconductor wafers used in high bandwidth applications, a supplier of manufacturing equipment for assembling photovoltaic modules from solar cells, and a provider of ion implant services for implantable medical devices.

Methode Electronics, Inc., a publicly held company (Nasdaq METH) based in Chicago , Illinois is a manufacturer of electrical and optoelectronics components.

OEM Capital was asked to assist Spire Corporation in managing the sale of the business to one or more buyers to maximize shareholder value. Since the businesses were largely unrelated, we developed a sales program to find and secure synergistic buyers for each business in order to maximize shareholder value.

OEM Capital worked closely with the management to isolate the performance of each business and the recasting of historical and budgetary financial data showing the performance of each business and tying the results to the company’s audited financial statements.

Our marketing program elicited several attractive offers. A select group of bidders were invited to meet with management and receive a detailed presentation of the business. As a result of our involvement, Spire Corporation was able to conclude an attractive transaction in a timely manner while realizing a premium all-cash price of approximately US$13 million.

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

Astrosystems, Inc.

Astrosystems, Inc., a publicly held company based in Lake Success, New York, is listed on NASDAQ. It supplies AC frequency sources, power converters, uninterruptible power supplies, motion sensors and control devices as well as power supplies to industrial and defense oriented customers.

OEM Capital was asked to assist Astrosystems, Inc. in selling all of its operating businesses prior to a contemplated shareholder distribution. Since each of our client’s three businesses addressed distinct markets, we developed a sales program to find synergistic buyers for each business in order to maximize shareholder value.

OEM Capital worked closely with management to prepare detailed historical and budgetary financial data showing the performance of each product line and tying the results to the company’s audited financial statements. Although the historical performance and fortunes of each business were very different, we knew offering them as product lines would make them attractive to the largest number of bidders.

Our presentations elicited several offers for each business, with a few of the bidders indicating interest in more than one. Since we wished to coordinate the sale of the three businesses so as to minimize the expense to Astrosystems, Inc., it was necessary to assess not only the attractiveness of each offer but the flexibility of each bidder. As a result of our program, our client was able to conclude the divestitures in a timely manner, realize a premium price over book value and allow a large number of its employees to be hired by the purchasers.

Our success with Astrosystems, 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.

Benmar Marine Electronics

Benmar Marine Electronics, Inc., a wholly owned subsidiary of Belgrave Industries, Inc., is based in Newport Beach , California . The company provides marine navigation and control products to the recreational and commercial boating industry.

Datamarine International, Inc., headquartered in Mountlake Terrace , Washington is a publicly traded company that manufactures marine and land radios and navigational instruments, such as depth sounders, knotmeters, water temperature gauges, and wind speed and direction indicators.

OEM Capital was asked to assist Belgrave Industries, Inc. in selling its Benmar Marine Electronics business. The timely closing of a transaction helped Belgrave Industries, Inc. in its plan of reorganization.

As a result of our involvement in properly presenting the company to the most appropriate audience and our management of the sale process, our client was able to realize a timely transaction.

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.