Carlson Holdings, Inc.

The Company

Carlson Holdings, Inc. (Carlson or the Company) is a leading, multiregional, distributor of product assembly systems addressing the fastening and packaging needs of industrial, packaging, and construction customers. The Company leverages its national geographic footprint, robust distribution network, large supplier base, and state-of-the-art IT infrastructure to provide innovative and value-added solutions to a large base of national and local customers.

The Situation

Carlson was adversely affected by the downturn in the housing market as well as the restrained lending environment. Although the Company had significantly reduced its operating costs, the Company was impacted severely by the bankruptcy filing of one of its largest suppliers. Ultimately, the Company’s existing lender was unwilling to renew its credit line due to the anemic homebuilding market. KPMG Corporate Finance LLC was retained as Carlson’s exclusive adviser to assist the Company in seeking a long-term solution to this short-term problem by identifying a partner that shared the Company’s vision of the potential for the business.

The transaction

KPMG Corporate Finance LLC conducted a competitive process to identify and evaluate a number of strategic options available to the Company. KPMG Corporate Finance generated significant investor interest resulting in a number of potential alternatives that ranged from obtaining new financing to a sale of part or all of the Company. KPMG Corporate Finance assisted the Company in its negotiations with its existing lender and a number of potential investors. Ultimately, the Company chose to pursue a recapitalization led by Industrial Opportunity Partners, LLC (IOP), an Evanston, Illinois-based middle market private equity firm.