Costa Mesa, Calif. – March 4, 2008 – Phelps Industries LLC has divested its kitchen product division to Summit Brands. Transaction terms were not disclosed.
McGladrey Capital Markets LLC (formerly RSM EquiCo Capital Markets) initiated the transaction, sourced the buyer, led the negotiations and acted as exclusive financial advisor to Phelps Industries. National City Bank of Indiana provided acquisition financing. Bruce Landay of Landay & LeBlang served as legal advisor to Phelps.
"Looking to start diversifying the family estate, the Phelps ownership started exploring exit strategies, one of which was the sale of the kitchen product division. Because the division had a small number of employees, we looked for a buyer that could easily integrate the kitchen product division into an established organization with an opportunity for product line extensions," said John Hennessey, vice president, McGladrey Capital Markets. "Summit, which has been very active in the M&A market over the last few years, quickly realized that this acquisition was ideal from both a category and size perspective."
A team of McGladrey Capital Markets professionals contributed to the successful close of this transaction. John Dorey, senior managing director, and John Hennessey, led the deal team.
About McGladrey Capital Markets
McGladrey Capital Markets LLC (www.mcgladreycm.com) is a global provider of investment banking services to private and public companies with annual revenues of up to $1 billion. The firm’s services include mergers, acquisitions, divestitures, recapitalizations, capital raising and fairness opinions. McGladrey Capital Markets, which offers in-depth expertise in 12 distinct industry sectors, brings together companies, capital and creativity on a national and international scale to help clients achieve their personal and strategic objectives.
McGladrey Capital Markets is affiliated with RSM McGladrey Inc., one of the nation’s largest providers of business and tax consulting, wealth management, retirement resources and payroll services to midsized companies. The firm’s international headquarters are located in Costa Mesa, Calif. It also has offices in Chicago, Boston, New York and London.
McGladrey Capital Markets is licensed by the SEC and all state securities authorities, and is a member of FINRA and SIPC.
About Phelps Industries, LLC
Founded in 1966, Phelps Industries markets products that solve problems in the kitchen and specifically with kitchen appliances. The kitchen product division’s two core brands are Plink®, garbage disposal cleaner and deodorizer, and Glisten®, dishwasher cleaner, deodorizer, and rinse aid. Phelps Industries is based in Wakefield, Mass.
About Summit Brands
Since its founding in Fort Wayne, Ind., in 1958, Summit Brands (www.summitbrands.com) has manufactured and marketed leading household cleaning brands such as Super Iron Out, Disposer Care, Yellow Out, Lime Out, Instant Rust Out, Dishwasher Magic and Drain Out. Summit Brands continues to develop strong partnerships with allied manufactures and trade associations and works with them to strengthen its brand names.