Gatan, Inc. (Electron Microscope Product Operations)

Warrendale, Pennsylvania

has been acquired by

Morgenthaler Ventures

Cleveland, Ohio

Capital Alliance Corporation initiated
this transaction and assisted in its closing.

Gatan, Inc. (Electron Microscope Product Operations)

Gatan, Inc. manufactures several lines of patented electron microscope accessory products, and sits comfortably perched atop the worldwide market in several of its product areas. With the aid of Capital Alliance, Gatan sold its company to Morgenthaler, one of the leading venture capital firms in the United States, leveraging a competitive loan program from Heller Financial.

Founded by two brothers, Gatan became a highly profitable business with operations in the United States and Europe. When the brothers decided to transition from the active responsibilities of company operations, they sought out Capital Alliance to procure a buyer.

Under time pressure imposed by the personal requirements of the sellers, Capital Alliance swiftly analyzed the technical basis for the company’s value. A diligent outreach process to nine financially qualified, technically capable acquirers yielded a series of visits to Gatan. Seven of the potential acquirers made offers. Capital Alliance provided extensive analyses of each offer, negotiated improvements, and provided advisory support to the sellers as they determined the most desirable offer with respect to transaction amount and form of consideration.  The offers were highly complex and varied. Capital Alliance simplified the competing offers into common elements and terms, providing a clear basis for comparison.

Once their offer emerged as the premier bid, Capital Alliance negotiated with Morgenthaler to swiftly arrange senior lender support for the transaction. Heller Financial, a subsidiary of Fuji Bank, offered a competitive loan program that met the needs of all parties.

The transaction value exceeded Gatan’s initial minimum price target. Capital Alliance negotiated a large cash payment at closing. Additionally, the shareholders received substantial deferred payments and a sizeable minority equity interest in the new entity.