Case Study
Blitz U.S.A. Inc's predecessor company, U.S. Metal, was acquired in 1966 by Cy Elmburg's father as the sole manufacturer of metal jerry (i.e. jeep) gas cans sold primarily to the U.S. government. In 1981, Cy Elmburg purchased U.S. Metal from his father and in 1985 acquired Plattner Industries, a plastic consumer product company based in Ottowa, Kansas. In 1986, the two companies were merged and the operations were moved to Miami, Oklahoma. In 1992, U.S. Metal changed its name to Blitz U.S.A., Inc. to better reflect the Company's expanded product portfolio and its status as the largest manufacturer of plastic gas cans in the U.S.
For several years, Aspen and the Elmburgs discussed on an informal basis the status of the company and how to best prepare the business for a potential liquidity event at some point in the future. As Cy Elmburg approached retirement, these discussions progressed to assess the different alternatives that would increase the family's diversification including a recapitalization, partial or full sale of one or more of its divisions, or an equity investment by a third party. In addition, the family wanted to ensure that Blitz's long-term commitment to both its employees and the city of Miami, Oklahoma would be addressed in any potential transaction. In 2006, the Elmburgs engaged Aspen to more formally assess their options and as a result, the family decided it was in their best interests to seek a partner for the Company's automotive company via a sale or recapitalization. The Aspen team and Blitz management then developed detailed financial models and a Confidential Information Memorandum that outlined the existing and future state of the business. Once this information was completed, Aspen approached several strategic and financial buyers on a confidential basis to assess potential terms and conditions.
After receiving several proposals, the Elmburgs decided to sell the automotive business to a financial buyer and Blitz's existing management team. By partnering with Aspen on this transaction, the Elmburgs were able to increase the family's diversification, Blitz was able to continue its long-term commitment to its employees and the city of Miami, Oklahoma, while Blitz's management team was able to remain in their current roles and become owners of the business post closing.
We view this transaction as a testament to our long-term commitment of helping privately-held businesses not only generate liquidity, but also to address the unique considerations that may arise when selling a family-owned business.
"As I approached retirement, the Aspen team helped our family develop a strategy to not only diversify but to make sure our employees and community were taken care of post closing."
Cy Elmburg, Former Owner and CEO, Blitz U.S.A.