Tag Archive for: RecentTransactions

HIKES POINT PAINT & WALLPAPER HAS BEEN ACQUIRED BY DAGES PAINT

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ABOUT THE TRANSACTION:

Hikes Point Paint & Wallpaper (“Hikes Point” or the “Company”) has been acquired by Dages Paint Company (“Dages” or the “Buyer”).

Established in 1976, Hikes Point has developed into a leading independent retailer of premium paint and decorating supplies. The Company operates three locations throughout the Louisville, Kentucky market. Over several decades, Hikes Point has built a strong reputation among professional contractors and do-it-yourself customers. The Company provides premium products, knowledgeable service, and specialized expertise for residential and commercial painting projects. Additionally, Hikes Point has become the largest Benjamin Moore account in the Louisville area. Its established locations, customer relationships, and market presence have supported the Company’s longstanding position within the community.

STRATEGIC FIT WITH DAGES PAINT:

Dages Paint has served the Louisville market since 1930 under its familiar “Keeping Louisville Colorful” slogan. The company is Louisville’s oldest independent paint retailer. For three generations, the Dages family has owned and operated the business. Throughout that history, Dages has maintained a strong commitment to personalized service and product expertise. The acquisition brings together two established independent paint retailers with deep roots in the Louisville market. Both companies have built their businesses around specialized knowledge, customer service, and long-term relationships.

In addition, Hikes Point provides Dages with three established retail locations and an expanded customer base. The transaction also strengthens Dages’ presence among professional contractors and individual consumers throughout the region. Just as significantly, Dages provides continuity for Hikes Point’s employees and customers. The new ownership shares the Company’s emphasis on service, product knowledge, and customer relationships. The combination allows both companies’ established strengths to continue under experienced local ownership. Accordingly, the transaction represents a natural strategic fit between two longstanding Louisville businesses.

ALLSTON ADVISORY GROUP’S ROLE:

Allston Advisory Group served as the exclusive financial advisors to Hikes Point Paint & Wallpaper and its owners. Allston began by performing an Analysis of Value and preparing the Company for the transaction process. The firm then prepared a comprehensive Confidential Information Memorandum presenting the Company’s operations, financial performance, locations, market position, and growth opportunities.

During the transaction, Allston managed the confidential sale process and coordinated communications between the parties. The firm also assisted the Buyer and Seller throughout due diligence and negotiations. A key transaction challenge involved securing sufficient acquisition financing despite modest available collateral. To address this issue, Allston assisted the Buyer in pursuing an SBA-guaranteed 7(a) loan. Through these efforts, the Buyer obtained the financing necessary to complete the acquisition. The financing structure helped convert a strategically compelling transaction into an executable one.

As a result, the transaction provided the sellers with their desired liquidity and ownership transition. At the same time, employees joined an established, customer-focused organization with significant industry experience. The acquisition also preserved local ownership while positioning the combined business for continued growth throughout the Louisville market.

ABOUT ALLSTON ADVISORY GROUP:

Allston Advisory Group is an experienced mergers and acquisitions advisory firm serving privately held, lower middle market companies. The firm provides mergers and acquisitions, business valuations, and exit strategies. Allston works closely with business owners to understand their objectives and prepare their companies for the transaction process. The firm then manages a disciplined and confidential sale process from initial preparation through closing.

For additional information on this transaction, please contact one of our advisors.

A. ARNOLD WORLD CLASS RELOCATION HAS BEEN ACQUIRED BY THE MANAGEMENT TEAM

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ABOUT THE TRANSACTION:

A. Arnold World Class Relocation (“A. Arnold” or the “Company”) has been acquired by members of the Company’s management team (“Buyers”).

Established in 1905 and headquartered in Louisville, Kentucky, A. Arnold has developed into a leading independent moving and relocation company. The Company serves individuals, families, corporations, and organizations throughout the United States and internationally. Through the A. Arnold Group, the Company provides a broad range of relocation, transportation, logistics, and commercial services. Its integrated capabilities allow customers to coordinate complex moves through an experienced organization.

A. Arnold World Class Relocation specializes in full-service domestic relocation for individual households and multinational corporations. The division manages relocations throughout the United States. Additionally, Sterling International, Inc. provides international relocation services for households and commercial customers. Its capabilities support clients moving employees, operations, and personal belongings across international markets. A. Arnold’s Commercial Services division provides business solutions for companies of various sizes. These services include logistics, transportation, and supply chain management.

MANAGEMENT BUYOUT AND OWNERSHIP TRANSITION:

The transaction transfers ownership to members of A. Arnold’s existing management team. As a result, the Company gains new ownership while maintaining experienced leadership already familiar with its operations. A management buyout may provide several advantages when an established leadership team is prepared to assume ownership. In this case, the transaction creates continuity for customers, employees, and other stakeholders. Moreover, the Buyers already understand the Company’s operations, customers, employees, and competitive position. Their existing knowledge helps reduce disruption during the ownership transition. The transaction also provides the sellers with a path to liquidity while preserving the Company’s established organization. At the same time, management gains the opportunity to participate directly in A. Arnold’s future ownership and growth.

ALLSTON ADVISORY GROUP’S ROLE:

Allston Advisory Group advised both parties in connection with the management buyout. First, Allston analyzed the Company’s financial performance and established a mutually-acceptable transaction value. Next, the firm helped structure a transaction that addressed the objectives of both the sellers and management team. Financing represented a critical component of making the transaction executable. Because the buyers had modest collateral available, conventional acquisition financing presented challenges. Allston therefore assisted management in obtaining financing through an SBA-guaranteed 7(a) loan. In doing so, Allston worked with the parties and financing sources to support the proposed transaction structure. The financing allowed management to complete the acquisition despite the limited collateral available.

The transaction demonstrates how thoughtful structuring may facilitate ownership succession when capable managers lack substantial personal capital or collateral. More broadly, the management buyout provided a practical succession solution for an established company with more than a century of operating history. It also positioned experienced management to lead A. Arnold through its next chapter of ownership.

ABOUT ALLSTON ADVISORY GROUP:

Allston Advisory Group is an independent mergers and acquisition advisory firm serving privately held, lower middle market companies. The firm provides mergers and acquisitions, business valuations, and exit strategies. Allston works closely with business owners to understand their objectives and prepare their companies for the transaction process. The firm then manages a disciplined and confidential sale process from initial preparation through closing.

For additional information on this transaction, please contact one of our advisors.

NEWS SOURCES:

Allston Advisory Group is an experienced boutique M&A advisory firm providing a variety of services to lower middle market companies. See our footer for contact information.

(502) 742-2933
[email protected]
P.O. Box 21266, Louisville, KY 40221

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