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Completed Transactions > Manufacturing > MGI Traffic Control Products has been acquired

MGI Traffic Control Products has been acquired

MGI

Date

Dec 2008

Region

Indiana

MGI Traffic Control Products is a distributor of traffic control products (pavement markers, crash cushions, signal accessories etc.) for the construction and maintenance of roads and highways in Indianapolis.

The Company in late 2005 was expecting huge growth from a recently passed state highway bill planning to spend over a billion dollars in the next ten years. We were able to get several parties interested as a result and had our first signed LOI in June of 2006.

Our client decided to go on hold and take advantage of the growth opportunity as well as fire his accountant and get a new one. He told us if a buyer came along he would be interested in selling. The client decided to go back on the market in May of 2008 and we met with him. In spite of the boom in highway growth, our clients business was down due to lack of working capital not allowing him to go after bigger jobs. The new accountant did clean up the financials only to find that the profits reported in the tax returns of the past were overstated and the client was filing amended returns. A former client whose business was sold 5 years ago came to Generational Equity looking for a business. He became interested in MGI and we had a dual signed LOI on August 4, 2008. The buyer was bullish on the opportunity and we signed an LOI 10/9/08. The deal closed 12/4. Our client was thrilled with the deal and is looking forward to working with the buyer on growing the business."

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