Representative Transactions

SC&H Capital: Maximizing Shareholder Value

Phillips Corporation has sold its Subsidiary Haeger, Inc. to Penn Engineering

The SC&H Capital team were consummate professionals. The three of them were a positive force – competent, models of integrity, and willing to go the extra mile at all times. I felt these three were always focused on creating the right outcome.

Phillips Corporation (phillipscorp.com) is a supplier of manufacturing technology products and services primarily focused on CNC machine tools (metalworking), engineered product solutions, and additive manufacturing technology.

Haeger was an independent subsidiary of Phillips Corp, and is the world leader in the development of innovative fastener insertion technology solutions. For over 25 years, Haeger has manufactured pioneering hardware insertion machines and tooling systems for inserting nearly every type and size of self-clinching fastener imaginable.  Haeger machines are found in manufacturing facilities around the globe in industries such as automotive, computer servers, aerospace, and solar panels.

Phillips Corporation had been approached by multiple potential buyers to gauge interest in selling the Haeger subsidiary.  Management recognized the need to develop a rigorous and thoughtful process to investigate strategic alternatives and so brought in SC&H Capital to help management prepare.

SC&H worked with Phillips and Haeger management to define goals in a transaction, identify the best potential buyers and design an M&A process that would maximize the chance of a successful outcome.  SC&H developed financial models and marketing materials targeted to potential synergies and growth strategies with each specific identified potential buyer.

Very quickly in the process, Penn Engineering emerged as the best strategic fit. SC&H led negotiations on purchase price and economic terms, as well as managed the due diligence and preparations for transitioning the Haeger business unit from Phillips Corporation to Penn Engineering.