Buyout (LBO, MBO, MBI) • Manufacturing

Red Top Capital Acquires Production Tool Companies

On December 19, 1997, private equity firm Red Top Capital acquired manufacturer Production Tool Companies

Acquisition Context
  • This is Red Top Capital’s 1st transaction in the Manufacturing sector.
  • This is Red Top Capital’s 4th transaction in the United States.
  • This is Red Top Capital’s 1st transaction in Illinois.
Investment Fate
  • Production Tool Companies merged with another company in 2007.

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M&A Deal Summary

Date December 19, 1997
Target Production Tool Companies
Sector Manufacturing
Buyer(s) Red Top Capital
Deal Type Buyout (LBO, MBO, MBI)

Target Company

Production Tool Companies

Chicago, Illinois, United States
Production Tool is a “Turning up to 25’ feet diameter and horizontal boring bars with 40 feet’ of travel.On December 19, 1997 all of the assets of Production Tool Corporation were acquired by an acquisition corporation formed by Red Top Capital LLC, NationsCredit Commercial Corporation (now Bank of America Commercial Finance), and an industry executive. Production Tool Corporation performs large scale machining and repair work for OEM's located in the upper Midwest and for the steel industry around the great lakes. The Company has large scale machining capabilities not found in any other machine shops in the U.S.
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Buyer Overview 1

Buyer

Red Top Capital

Delafield, Wisconsin, United States

Category Private Equity Firm
Founded 1993
Size Small
Type Sector Agnostic
DESCRIPTION

Red Top Capital LLC is a private investment firm focused on management buyouts of established manufacturing businesses (consumer products, food, furniture, industrial products, equipment, textile, apparel) where the firm looks to acquire a controlling interest. Red Top generally pursues companies with sales of $5 to $50 million and at least earnings of $0.5 to $1 million. Total transaction values range from $5 to $30 million. Red Top Capital makes equity investments with personal capital, rather than with funds from a limited partnership with institutional investors. Red Top Capital was formed in 1993 and is based in Hartland, Wisconsin.


Deal Context for Buyer #
Overall 4 of 8
Sector: Manufacturing 1 of 3
Type: Buyout (LBO, MBO, MBI) 4 of 8
State: Illinois 1 of 1
Country: United States 4 of 8
Year: 1997 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1997-09-05 Jubilee Embroidery

Lugoff, South Carolina, United States

Jubilee Embroidery is a specialty embroidery contractor engaged in the production of embroidery and appliqué products which are used in home furnishings, children's apparel, sports logo merchandise, and various other applications. Its customers include West Point Stevens, Springs Industries, Nike, Adidas, Umbro, Champion Products, Health-Tex, Inc., Polo, and many others. Jubilee Embroidery is based in Lugoff, South Carolina.

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FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1998-05-29 Eagle Dry Goods Co.

Old Hickory, Tennessee, United States

A controlling interest of Eagle Dry Goods was purchased on May 29, 1998. Eagle imports and distributes high quality custom knit and silk shirts. The Company concentrates on the marketing and sale of Authentic Clothing to the Advertising Specialty Industry (ASI). The Company is located in Nashville, TN. Red Top Capital LLC obtained a majority equity stake from the founders as a condition of providing equity capital for the Company to continue its outstanding growth potential.

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