SC&H Capital, a leading investment bank specializing in M&A advisory for middle-market companies, is pleased to announce that its client, The Lyons Companies (“Lyons” or the “Company”), has been acquired by Fenco Solutions (“Fenco”).
Founded in 1972, Lyons produces high-quality industrial, appliance, food service, and store fixture products for well-known companies throughout North America. Once a one-man operation based out of the basement of founder Skip Lyons’ home, the Company grew to operate out of a strategically located 200,000-square-foot facility in Louisville, Kentucky. The Company enjoyed decades of success and growth until an unidentified issue with its ERP system resulted in significant inventory reporting and costing issues. Despite efforts to rectify the problem, the damage had been done and Lyons could no longer service its debt. The Company filed for chapter 11 to provide a runway to sell the business.
SC&H Capital was retained as the exclusive investment banker to the debtor in possession and given eight weeks to run a marketing process and solicit bids in advance of the court-approved auction. SC&H Capital quickly canvassed the market and executed confidentiality agreements with 51 companies and conducted site visits with nine interested prospects.
Despite the expedited timeline, SC&H Capital was able to identify a stalking horse bidder and negotiate several improvements to the bid in advance of it being selected. SC&H Capital then solicited potential overbidders to participate in the auction, ultimately qualifying two additional groups as bidders. Over the course of an entire day and 30 rounds of bidding, SC&H Capital dramatically increased the value of the bids at the auction. The culmination of these efforts was a winning bid from Fenco that provided a 58% increase in cash from the stalking horse bid and added several other improvements that created substantial value for the estate, including the assumption of leases and payments to unsecured creditors. This was critical in obtaining court approval of the sale, which was given shortly after the auction was concluded. Within two months of being retained, SC&H Capital delivered a bidder that kept the business operating, saved over 200 jobs, and maximized recovery for the estate.
“This acquisition elevates our Fenco offerings to provide our clients with even greater levels of service,” said Rand, Chairman and majority owner of Fenco and CEO of Rand & Co Holdings. “Our goal has always been long-term growth, and saving these jobs is a big part of that. We believe in investing in our people and our community, and this deal strengthens our ability to do so.”
“Working with the Lyons team to complete this sale quickly was critical to maintain going concern value and maximize the recovery for the estate. The support from the team at Dentons allowed us to focus on the sale efforts, and through a collaborative effort from many parties, we achieved a result that provided significant funds for distribution and continued employment for over 200 individuals, which is a goal in all of our engagements. We are excited to see what the future holds for Lyons as part of Fenco,” said Matt LoCascio, Principal at SC&H Capital.
The transaction was signed on May 11, 2024, and closed on July 26, 2024.
About SC&H Capital
SC&H Capital is an investment banking and advisory firm specializing in mergers and acquisitions (M&A), distressed M&A, capital raises, financial restructurings, employee stock ownership plans (ESOP), and business valuations for middle-market companies nationally. We are recognized for delivering relevant market insights and tailored solutions to help businesses achieve their true strategic value. To learn more, visit www.schcapital.com.
