CGW

Buy-Side Advisory

KPMG Corporate Finance advised on the CGW Southeast Partners IV, L.P. on its purchase of Johnston Industries, Inc.

Background

Johnston Industries, Inc. was a publicly-held, NYSE-listed textile manufacturing company with operations in Georgia and Alabama.

Complex Issues

Textile manufacturing companies were under severe constraints due to the extension of NAFTA rules affecting Caribbean and African nations. Additionally the Asian financial crisis resulted in an increase in exports to North America markets, creating tighter margins for textile manufacturers. Also, a control group representing 30% of the outstanding equity was looking for an exit strategy.

The Solution

KPMG Corporate Finance, aware of the situation, presented the opportunity to CGW Southeast Partners IV, L.P., who retained us to advise them on the acquisition. CGW is a private equity fund managed by a group with experience in textiles, and they, together with BancBoston Capital, Inc. acquired all of the outstanding shares of Johnston Industries, Inc.

Success Factors

KPMG Corporate Finance’s prior experience within the industry and knowledge of contacts within the financial buyer community were integral components to the successful and timely completion of the transaction.