Stewart-MacDonald Manufacturing

Situation

Stewart-MacDonald Manufacturing Company, Inc. (“StewMac” or the “Company”), based in Athens, Ohio, is the world’s largest e-tailer of specialty tools and parts to customers active in the repair, modification, and construction of guitars and similar fretted musical instruments.

StewMac has established in-house brands that have sustained customer loyalty throughout its 50-year history. The Company is primarily known as a “one-stop” source for its branded, niche products. Key products include specialized tools, tuners (including Waverly, Sloane, and Five-Star brands), pickups and electronics, as well as finishing supplies and how-to materials.

StewMac’s sole shareholder sought a liquidity event to sell 100% of his ownership interest in the company to a well-positioned strategic or financial investor.

Solution

StewMac engaged Amherst Partners (“Amherst”) to lead a sale process that would maximize value and identify a partner with the expertise and resources required to continue building upon the Company’s legacy by enhancing its iconic brands, expanding its U.S. manufacturing capacity, and advancing its global presence.

Results

Amherst initially identified and approached a select group of strategic and financial investors. In this process, the Company received multiple indications of interest at competitive valuations higher than initial expectations.

The Company was ultimately acquired by San Francisco, California-based private equity fund Champlain Capital Partners II, L.P. (“Champlain”).

Champlain has significant experience with ecommerce and branded consumer products companies. Champlain plans to leverage their marketing, ecommerce, and operational expertise to continue to grow and expand StewMac.