Situation
Delta Distribution / Michigan Carpet (“Delta” or the “Company”), based in Grand Rapids, Michigan is a specialized flooring less-than-truckload carrier. Many of its customers include national, regional and specialty outlets of flooring products that are used in both commercial and residential projects.
Delta’s sole shareholder started operation in 1997 and currently operates a fleet of tractors and trailers delivering flooring from nine locations servicing the Great Lakes and Midwest regions of the country. The Company was successful in developing key customer relationships in these strategic areas of the country ultimately making Delta a target for industry consolidators.
Solution
Xpress Global Systems, a portfolio company of Aterian Investment Partners and the largest independent provider in the sector, had contacted the shareholder of Delta on multiple occasions about acquiring the company.
In early 2021, these inquiries intensified. The shareholder elected to assess this inquiry more thoroughly and selected Amherst to vet the opportunity then assist in managing the sale process for the Company.
Results
Amherst worked to position the Company for sale, assisted in the negotiating of various salient terms and conditions of the Letter of Intent with Aterian and Xpress Global Systems, then worked with Delta’s legal counsel in navigating the sale process to closure.
Xpress Global Systems successful purchase of Delta was a significant step in its goal of consolidating the independent providers of flooring in the US.
