Case Study

The Majority Recapitalization of Mechanical Servants, Inc., Including an Equity Investment led by Weinberg Capital Group

Background

  • Founded in 1946 and located in Melrose Park, Illinois, Mechanical Servants, Inc. d/b/a Convenience Valet (“Convenience Valet” or the “Company”) is a manufacturer and value-added distributor of branded convenience and travel size health and beauty care products, over-the-counter drugs, auto care supplies and sundries sold in small-portion, convenience-sized packages.
  • The Company re-packages its manufacturers’ branded products in convenient size and trial/travel size packages for over 100,000 end-customer outlets, which include retail, grocery, convenience stores, drug stores, mass merchants, warehouse clubs, travel centers, hotels and cruise lines in the United States.
  • Mesirow Financial Investment Banking was engaged by Convenience Valet to assist in the review of strategic alternatives, including a potential sale of the Company.

Action

  • Mesirow Financial created a compelling investment thesis highlighting the Company’s brand recognition and leading market position, niche manufacturing capabilities, and near-term growth opportunities.
  • Mesirow Financial’s team leveraged their deep, long-standing relationships and structured a targeted marketing process to a select group of financial buyers, which included family offices, and a handful of strategic buyers.

Result

  • In March 2015, Convenience Valet completed a majority recapitalization with an equity investment led by Weinberg Capital Group (“WCG”), a Cleveland, Ohio-based family office. WCG’s investment will be utilized to fund growth initiatives.
  • Convenience Valet’s owner remains an investor and continues to act as CEO.