A renewable energy company Financing an acquisition by a start-up
In 2007, an oil major announced plans to sell its lubricating oil re-refinery in Louisiana because the plant was deemed non-strategic. The owners of an independent automotive lubricant company, and a lubricating oil blending company, saw the opportunity to purchase the re-refinery as the first step in their plans to build the premier independent lube oil re-refining, blending and marketing business in North America. The companies collaborated on a bid to purchase the plant in Louisiana; if successful, they would merge the three entities to create a new holding company βHoldcoβ.
The creation of Holdco depended on the successful acquisition of the re-refinery, but the bid collaborators lacked the experience needed to raise the required capital.
Republic Partnersβ Solution
Republic Partners worked closely with the bid collaborators to articulate a compelling case for profitable growth behind their strategic vision. Republic Partners produced marketing and financial documents and introduced the bid collaborators to potential investors and lenders. Republic Partners also assisted in the selection of, and negotiation with, the eventual subordinated debt lender. Following the successful acquisition of the re-refinery, Republic Partners advised Holdco on the sale of the oil storage and terminalling business that was included in the acquisition, simultaneously reducing Holdcoβs leverage and sharpening its focus on re-refining - the primary objective of the acquisition. Since its formation, Holdco has continued to grow profitably organically and through acquisitions.Β