New Castle, Indiana
has been acquired by
DORMA Group, North America
Capital Alliance Corporation initiated
this transaction and assisted in its closing.
Modernfold, Inc. designs, manufactures, and sells moveable wall systems for use in hotels, convention centers, and other commercial buildings. With the aid of Capital Alliance, Modernfold sold its business to Dorma Holdings GmbH, a large German privately held manufacturer of commercial architectural products.
With a 75-year history, and annual sales exceeding $40 million per year, Modernfold was the second largest manufacturer of moveable wall systems in the world. When the company’s primary shareholder, an offshore insurance company, planned to liquidate its U.S. holdings, it contacted Capital Alliance to seek an acquirer and negotiate a sale.
Since Modernfold operated in a very narrow market niche with highly customized manufacturing equipment, the company wanted to prevent word of an impending sale to leak to the architectural products marketplace. Capital Alliance assessed opportunities for a sale to acquirers outside of Modernfold’s industry, and advised the sellers to approach an unconventional group of qualified buyers. Capital Alliance also exploited its extensive international network of M&A partners, and cultivated a targeted list of potential acquirers, who responded favorably to extensive outreach materials.
Capital Alliance negotiated an all-cash closing consideration with Dorma, coupled with a contingent incentive payment that was paid in full 18 months after closing.