Modernfold, Inc.

Modernfold, Inc.

New Castle, Indiana

has been acquired by

DORMA Holdings GmbH + Co. KGaA

Ennepetal, Germany
through its wholly owned subsidiary

DORMA Group North America, Inc.

Reamstown, Pennsylvania

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

Modernfold, Inc.

The Selling Company: Modernfold, Inc. designs, manufactures, and sells moveable wall systems typically used in hotels, convention centers, and other commercial buildings. With a 75 year history, this company is the second largest manufacturer in the world of such products with annual sales exceeding $40 million per year.

Why the Company Was Sold: The company’s primary shareholder was an offshore insurance company that was liquidating its U.S. holdings.

Capital Alliance’s Performance: The selling company operated in a very narrow market niche with very customized equipment. The sellers did not want to deal with competitors. After thoroughly understanding the company’s operations, Capital Alliance undertook extensive worldwide research to uncover both strategic and financial acquirers. Six offers were generated from financially qualified acquirers. Under the Capital Alliance plan, a strong international strategic acquirer was brought into the negotiations near the end, resulting in a very attractive all cash price.

Terms of the Transaction: This was an all cash transaction involving a substantial initial payment, an escrow, and a 1.5 year future incentive payment that was paid in full.

The Acquiring Company: Dorma Holdings GmbH is a large German, privately-held manufacturer of commercial architectural products including building security systems, door systems, and internal building fixtures.

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