Burner Systems International, Inc.
Client Profile
Burner Systems International, Inc. (“BSI” or the “Company”) is a leading global supplier for the $1.0 billion gas appliance industry with headquarters in Chattanooga, Tennessee and additional manufacturing facilities in Mexico, France, England, and Turkey. The Company’s products are incorporated in a wide variety of natural gas and propane fueled appliances used for cooking, heating, and in recreational vehicles. BSI produces components, assemblies, and complete system solutions for cooking and heating equipment. The Company’s facilities each have specific manufacturing specialties and are located in proximity to BSI’s major clients to better respond to client demand and better manage freight costs.
Situation
The Company derives its revenue from the residential remodeling, replacement, and new construction markets. Given the downturn in the economy and the protracted bottoming of the housing market, the Company’s sales and profitability declined in recent years. BSI had sufficient liquidity to execute on its near and medium term goals; however, the Company looked to strengthen its capital base and solidify its operations for future growth.
Solution
SSG was retained as BSI’s exclusive investment banker to explore strategic alternatives, including a potential sale of the Company. Leveraging its prior transactional experience in the appliance component sector as well as its relationships with special situation-oriented private equity firms, SSG conducted a comprehensive marketing program which resulted in a competitive bidding process for BSI. Aterian submitted an offer that maximized the value of the business and provided the Company and its management team with the long term support to facilitate its future growth. In addition to conducting the marketing process, SSG was instrumental in facilitating resolution of cross border due diligence issues and in facilitating consensus among key stakeholder groups to allow the transaction to close on a timely basis. The transaction closed on May 23, 2012.
