T R A N S A C T I O N A B S T R A C T

MAUTZ PAINT COMPANY

Einhorn Associates was able to achieve optimal results for the owners, even though the company faced litigation that was damaging to the company’s image and caused potential buyers to deem it unsaleable.

Testimonials

“You and everybody from your association always handled everything in a very professional and discreet manner and I really appreciated that.”

--Bernhard F. “Biff” Mautz, Jr.
Owner and Chairman of the Board
Mautz Paint Company

"Steve...I want to say “thank you” to you and your staff...you and your staff were very professional, accommodating and even fun to work with. You kept us moving forward and greatly assisted us through the many negotiations and hurdles we had to overcome. I would strongly recommend Einhorn Associates, Inc. to other potential clients who are considering a merger or acquisition of their business."

--William Hans

Vice President of Finance/CFO

Mautz Paint Company

“Thank you for your help in fully representing your client, which always makes for a successful negotiation and a good transition into our Company.”

--Conway G. Ivy
Senior Vice President
Corporate Planning and Development
The Sherwin-Williams Company

Background

Mautz Paint Company is a Wisconsin-based paint manufacturer with over 30 retail store locations in Wisconsin, Iowa, Minnesota, and Indiana. The stores carry Mautz-branded paint, additional complementary types of paint from other paint manufacturers, sundries such as brushes and painting accessories, and wallpaper.

Mautz was founded in 1892 and has been run by three generations of the Mautz family. The family decided to sell the business to a synergistic firm who could grow the business and provide more opportunities for the employees.

Einhorn Associates’ Role

Einhorn Associates put together a valuation for the company to give the owners an idea of the company’s position in the marketplace. Einhorn prepared an offering memorandum and detailed documentation of the different store locations to present to potential buyers.

Because Mautz was a paint manufacturer, an area where Einhorn has a great deal of experience, and only synergistic buyers were going to be approached, a solid list of potential buyers was put together quickly. However, shortly before the marketing of the company was to begin, the city of Milwaukee filed a suit against Mautz and NL Industries, alleging that these two companies were responsible for the city’s problems with lead paint.

Because of the lawsuit, several potential buyers, who were considered to be the best fit for buying Mautz, were unable to even consider the company as a possible acquisition, as legal implications kept them from viewing the information.

Other potential buyers had difficulty in making offers, especially in terms of indemnifying Mautz with the lead paint litigation. After discussions and negotiations with these potential buyers, Einhorn was able to bring forth several offers, and Sherwin-Williams was chosen as the best prospect.

Einhorn then worked closely with both Mautz and Sherwin-Williams to close the transaction:

Einhorn negotiated with both parties to arrive at an acceptable purchase price.
Einhorn worked closely with Mautz’s attorneys and financial advisors in organizing and reviewing the due diligence information.
Einhorn worked with Mautz’s attorneys and Sherwin-Williams’ attorneys on the asset purchase agreement and issues with the lead paint litigation, ensuring that Mautz’s needs were met, while remaining fair to Sherwin-Williams.

Throughout the process, from the marketing stages until closing, Einhorn was able to maintain confidentiality, which was especially important as there were potential legal implications that could arise from information leaks.

Einhorn’s Contribution

Einhorn was able to develop acceptable offers for Mautz, in spite of the lead paint litigation, and worked closely with both sides to increase the seller’s value, while remaining fair to the buyer, and maintaining confidentiality throughout the process. Einhorn worked closely with financial and legal advisors to ensure that the due diligence process went smoothly and that issues with the asset purchase agreement were handled quickly and in a way that was acceptable to both parties.