Tribeca Oven

Summary

M&A Sell-Side Advisor

Carlstadt, NJ

Tribeca Oven, Inc. (“Tribeca Oven”) is a New Jersey-based baker and marketer of premium quality artisan breads and rolls. Tribeca Oven’s core business is in flash-freezing bread after baking it to about 85% completion, then sending it to restaurants and supermarkets to heat and serve in just a few minutes.

The founder was looking to exit the business and realize the value created while his two younger partners wanted to take some chips off the table while also sharing in the upside.

Key Challenges

Family Business

Sale

Future Equity Participation

Engagement Highlights

The owners had invested in new capital equipment to support growth and to improve profitability when a large, publically traded strategic buyer had presented an unsolicited offer. Carl Marks prepared a detailed response on behalf of Tribeca Oven and increased the initial offer by over 50%.
Ultimately, the owners decided to wait until the new production line was up and running to re-approach the market.
Carl Marks ran a targeted process after the new production line was running, and sold Tribeca Oven to C.H. Guenther & Son, Inc. for a double digit multiple.
We created a new and innovative concept called “The Strategic LBO”, which incorporated three deal points rarely seen in a sale to a strategic buyer:
- Allowing management to own equity directly in Tribeca post-closing aligned management’s interests with the buyer;
- Intercompany leverage gave management a greater percentage of equity for each dollar rolled; and
- Put/call options at increasing valuations rewarded superior performance and compensated management for the cap on the percentage of equity they could own with the strategic buyer.

Transaction completed by Carl Marks Securities LLC

Tribeca Oven

Summary

M&A Sell-Side Advisor

Key Challenges

Engagement Highlights

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