SSG Advises The Protective Group, Inc. in the Sale of Substantially All of its Assets to Point Blank Enterprises, Inc.
SSG Capital Advisors, LLC (“SSG”) acted as the investment banker to The Protective Group, Inc. (“TPG” or the “Company”), a portfolio company of Argentina based Exxel Group (“Exxel”) in the sale of substantially all of its assets to Point Blank Enterprises, Inc., (“Point Blank”), a portfolio company of JLL Partners (“JLL”). The transaction closed in October 2015.
TPG is an industry leader in the development, design and production of lightweight composite armor solutions with a focus on survivability, mobility and protection from lethal force. Headquartered in FL, TPG has developed armor solutions for military applications since 1960 and has been the leading provider of helicopter armor for the last decade. The Company’s products have been deployed by the U.S. Army, U.S. Special Operation Forces, U.S. Marine Corps, U.S. Navy, U.S. Air Force and other armed forces around the world.
While TPG had a history of delivering high quality products and healthy gross profit margins, changes in the federal contracting environment significantly impacted its financial performance. The Company was plagued by government sequestration, which disrupted the government’s budgeting and defense funding process. The resulting slowdown in contract awards strained TPG’s profitability and compromised its financial condition.
The Company retained SSG to evaluate strategic alternatives. SSG conducted a comprehensive marketing process to a wide universe of strategic and financial buyers to determine interest in acquiring the business as a going concern. Point Blank was the perfect strategic buyer to acquire TPG. SSG’s ability to solicit competitive offers from buyers in a fast-tracked process enabled the Company to maximize value while preserving the jobs of substantially all of its employees and maintaining the loyalty of its global customer base.
Point Blank is a leading provider of high performance protective solutions, including bullet, fragmentation and stab resistant apparel and related accessories. Through its key brands, Point Blank Body Armor, Protective Apparel Corporation of America (PACA), Protective Products and PARACLETE®, the Company ranks as the largest global supplier of ballistic and soft armor systems in the world.
JLL Partners is a middle-market private equity firm with a 27-year track-record of adding value to complex investments through financial and operational expertise. Since its founding in 1988, JLL Partners has committed approximately $4.5 billion across seven funds. The firm has developed significant expertise in sectors including aerospace, healthcare, building products, financial services, and business services.
Other professionals who worked on the transaction include:
- Paul J. Keenan Jr., Joshua M. Samek, Jasmine Zacharias and Kyle T. Hershey of Greenberg Traurig P.A., counsel to The Protective Group, Inc.;
- Bradley Shraiberg of Shraiberg, Ferrara & Landau P.A, counsel to Exxel Group and
- Curtis B. Hunter of Berger Singerman LLP, counsel to Point Blank Enterprises, Inc. and JLL Partners.