Sharp Tooling Solutions, LLC (“Sharp” or the “Company) is a premier provider of quality assurance and manufacturing tooling solutions, supporting both major automotive and aerospace & defense manufacturers globally. Utilizing its highly skilled labor force and industry-leading machinery, the Company is able to manufacture any small to mid-sized precision tooling its customers require. The Company’s capabilities include program management, mechanical and controls design, manufacturing, warehousing, and inventory management.
SC&H Capital was retained in April of 2024 by Sharp via its private equity sponsor as the exclusive investment banker to oversee the sale process. The team at SC&H Capital conducted an exhaustive marketing process resulting in over 45 groups executing NDA’s and receiving four going concern offers and three equipment only offers. Ultimately, Sharp chose to sell to STS Holdco, LLC (STS or the “Buyer”) as they were willing to continue operations as a standalone subsidiary, hire nearly all of the Company’s employees, and close on an expedited timeline.
A significant challenge was that to get the sale approved by all lenders, Sharp needed to provide them with an exact amount they would each be paid at closing. The Buyer’s offer included a net working capital adjustment, so the funds available at closing were a moving target. SC&H continued to negotiate with the Buyer and was successful in having them forego their working capital adjustment and agree to a firm sale price (in addition to paying Sharp’s legal and transaction costs). This provided the lenders with an exact amount to be received at closing, which they ultimately approved, allowing the transaction to move forward.
