CSR Cosmetic Solutions

Acting as exclusive advisor to the seller.

Background

CSR is an Ontario-based, contract manufacturer of cosmetics and personal care products. The CEO and sole owner had operated the business for over 15 years and was ready for a well-deserved retirement. A sale process run by a top-tier accounting firm in 2015 was unsuccessful.

Solution

Undeterred by the accounting firm’s result, we dug deep into the company’s metrics and knew we could negotiate success. We identified 102 potential buyers, both strategic and financial, through a search that went global and surfaced only 25.5% Canadian prospects. We created an auction-like environment that yielded 8 offers by the deadline, with Korean and American buyers making the most aggressive proposals. We overcame major cultural differences with the eventual winner, a Korean publicly traded contract manufacturer, and arrived at a deal in the upper end of the initial value guidance. The post-acquisition integration process was highly productive and the company is now growing under new ownership.

Investment Banking Consumer Products & Retail
Case Studies

Rhyno Equity Group
Rhyno is a private equity firm that acquires mid-market manufacturing companies in the GTA. Their partners engaged us to structure the debt component of a buy-out of a kitchen cabinet maker.

Read Full Case Study

LEAP
LEAP Group was formed to acquire the assets of Metal Networks, an online quoting platform for metals procurement based in Austin, Texas. FirePower arranged a compelling deal structure for LEAP in this distressed situation.

Read Full Case Study
Market Insights
From the archives: July 2018

A Tale of Two Offers: Price vs. Structure
Imagine this situation (not hypothetical—it is an adaptation of one of our firm’s live deals): After taking years to build a successful company, your…

Read Full Report