Case Study:

Divestiture

ShockWatch

Business Description:

ShockWatch's equipment monitoring division, based in Graham, Texas, designs and manufactures its own branded line of equipment monitoring products sold globally through material handling OEMs, OEM dealer networks and end users that operate mobile material handling fleets within distribution centers, logistics hubs and manufacturing facilities. ShockWatch is a wholly owned subsidiary of Media Recovery, Inc., a portfolio company of Capital Southwest Corporation.


Challenge:

ShockWatch owners desired to divest its equipment and monitoring division in order to focus exclusively on its shipping and handling and cold-chain product lines. Additionally, an industry competitor had filed a patent infringement suit, greatly complicating any deal.


Solution:

The Company engaged us as merger & acquisition sell-side advisor to run a targeted sales process to identify interested strategic acquirors. We prepared the marketing materials and aggressively solicited interested and negotiated favorable terms with Rush Tracking Systems, a Pharos Capital Group portfolio company. We managed through the Company's unique challenges and achieved the goals of ShockWatch's board of directors and senior management, who were pleased with the divestiture.