Gauge House Sale to Marigny
a value-added distributor of measurement and instrumentation equipment to the energy, agricultural, transmission, manufacturing, industrial and related industries, with locations in Lafayette and Houma, LA
has been acquired by
Background
- Evangeline Securities (“Evangeline”) was engaged by The Gauge House, LLC (the “Company”) to run an auction process for a majority recapitalization
- The Company is a value-added distributor of measurement and instrumentation equipment to the energy, agricultural, transmission, manufacturing, industrial and related industries, with locations in Lafayette and Houma, LA
- The Company was recovering from lower cash flow in 2020 due to COVID-19 and reduced activity across their customer base, primarily in the oil and gas industry
- 100%-owner (the “Owner”) of the Company requested a full auction process and a year-end 2021 close because of the potential capital gains tax policy changes in 2022
Process
- Evangeline launched a robust auction process personally contacting over 200 strategic and institutional investors resulting in ~50 signed NDAs
- The auction process proved extremely successful, leading to multiple offers in the expected valuation range and a signed LOI
- Evangeline managed the 60-day exclusivity period to a successful closing
Result
- Evangeline successfully closed the transaction in 4 months and 4 days from engagement, in an extremely demanding transactional market due to a huge push for year-end closings across industries
- Owner is extremely pleased with the auction result as Evangeline advised the Company through the abbreviated timeline and found the right partner to purchase a majority stake and lead the Company to future growth with a reduced risk profile for the Owner