School Health Corporation Divests Econoline
Transaction Description
Jackim Woods & Company advised School Health Corporation on the sale of its Econoline division. Econoline is a specialty fabricator and distributor of high-quality foam and padding supplies for athletic trainers and orthopedic and sports medicine practitioners. The company has several proprietary product lines in the athletic wraps, tape, padding, felt/moleskin, foot/ankle, skin lubricant, and ice bag categories.
Transaction Details
A Private Investor
Chicago, IL
Acquired
Econoline Products, Inc.
a division of School Health Corporation
Concord, NC
Jackim Woods & Co advised the Seller
Transaction Overview
Challenges
As part of a strategic re-alignment, School Health Corporation decided it wanted to focus on its core strengths as a reseller and distributor. As a result, owning and operating a manufacturer/fabricator did not make strategic sense going forward. At the same time, School Health wanted to continue to represent and sell Econoline products. As a result, one of the primary objectives of the transaction was to sell the Econoline division to a buyer that would be a good operating partner and value-added vendor to School Health Corporation going forward.
Solutions
Jackim Woods & Co. ran a sell-side process that identified over a dozen prospective buyers for Econoline. We assisted School Health Corporation in vetting each buyer to determine if they would be a good operating partner and vendor going forward. In the end, we identify a Chicago-based private investor who was the perfect fit and assisted School Health Corporation in negotiating the purchase and sale agreement, a strategic partnership agreement, and a vendor agreement with the buyer.
Summary
Both parties were very happy with the outcome of a transaction that can truly be called a “win-win” transaction for both sides.
Richard Jackim, the Managing Partner of Jackim Woods & Co., has represented School Health Corporation for over 15 years and helped the company make a series of acquisitions and divestitures as part of an overall corporate development strategy.
