Hill and Valley, formerly Nancy’s Pies, is a baker of sugar free and no-sugar added pies, cookies, and cakes. The company is headquaretered in Rock Island, Illinois, one of the Quad Cities. The company was founded and owned by the Coin family, and operated primarily by George Coin and his son-in-law, Scott Florence.
In 2004 George Coin determined to sell the business to achieve liquidity and effect his retirement. His son-in-law wished to remain with the business and continue to serve as its President. The family retained us to secure a transaction that would meet all of its goals.
Challenges
The company was increasing its concentration of sales through Wal Mart.
Significant commodity cost increases depressed margins in 2004.
The company operated in a small niche market and strategic interest was limited.
There were few resources to be re-invested in a transaction yet we were determined to secure equity and management authority in the transaction.
Results
Senior members of our team contacted a broad number of highly qualified buyers capable of partnering with existing management and bringing additional resources for growth. We performed an extensive, sophisticated recasting of the company’s financial performance in light of the commodity price fluctuations. We identified and conducted negotiations with Circle Peak Capital, a private equity group committed to special transactions of this kind. We structured a transaction that provided full pricing and liquidity for George Coin and secured equity and authority for Scott Florence, who continues as the company’s President.
