- Industry: Furniture Manufacturing
- Hilliard Lyons Investment Banking’s Role: Buy-Side Advisor
About the Deal:
On May 14, 2018, a newly formed entity, Behold-Washington LLC, acquired the assets of two Mississippi-based furniture manufacturers, Behold Home Inc., and Washington Furniture Sales LLC.
Behold Home, based in Smithville, is led by CEO Lyle Harris, and Washington Furniture Sales is based in Pontotoc and was owned by industry veteran Gerald Washington. Both companies produce upholstered furniture sold to domestic retail chains. Mr. Harris will lead the new entity as its CEO. Hilliard Lyons Investment Banking (HLIB) acted as Behold Home’s exclusive financial advisor.
The combined Behold-Washington, LLC enhances the ability of each company to cross-sell product lines into an extensive customer base, as well as creating a diversified furniture manufacturer with over 400 employees and more than 800,000 square feet of manufacturing space.
“I’m excited about the future of the industry here in North Mississippi,” Mr. Harris said. “Combining Behold and Washington allows us to continue to make a quality, American-made product at a competitive price.”
John Mascarich, Managing Director for HLIB, first met Mr. Harris almost 10 years ago, when he was the President of another PE-backed furniture manufacturer. Over that time, Mr. Mascarich remained in close contact with Mr. Harris and advised him as he started and grew his new company, Behold Home. When the time was right to formally explore a transformative transaction like the Washington deal, Mr. Harris naturally turned to Hilliard Lyons. HLIB worked closely with Behold to identify potential acquisition targets, structure the transaction, and raise the debt and equity needed to close.
“We wouldn’t have got this deal without John’s hard work, expertise, and dedication,” stated Mr. Harris.
Pittco Capital Partners, based in Memphis, TN, lead the equity investment, along with Dobbs Management Services, Jackson Capital, and Behold’s management team. Ironwood Capital provided the mezzanine debt and equity co-investment, and First Tennessee Bank provided the senior debt and real estate loan.
About Hilliard Lyons Investment Banking:
Hilliard Lyons Investment Banking employs a full-service model that brings “Wall Street” resources and experience to our “Main Street” clients. Our focus is advising lower-middle-market and emerging growth companies in mergers & acquisitions, capital raising, and business valuation. See www.hlinvestmentbanking.com for details. Hilliard Lyons Investment Banking is a division of J.J.B. Hilliard, W.L. Lyons, LLC, a full-service wealth management firm headquartered in Louisville, Kentucky.
