HALF MOON BAY, California—Nurserymen’s Exchange, Inc. (“NEI” or the “Company”) has sold substantially all of its operating assets and business to Floramoda, Inc., a subsidiary of Monterey Peninsula Horticulture, Inc. (“MPH”) pursuant to §363 of the Bankruptcy Code. The transaction was approved by the Bankruptcy Court in the Northern District of California on July 18, 2011 and closed on August 5, 2011. FocalPoint Securities, LLC served as exclusive investment banker to NEI.
Justin Dautoff, former chief operating officer of NEI, and President of the new Nurserymen’s Exchange, stated, “The FocalPoint team was able to provide NEI a solution that allowed the Company to maximize value while remaining a viable operating entity and preserving the 70-year history of NEI. FocalPoint’s creativity, tenacity, and leadership through this difficult period have been instrumental and outstanding. We would not have been able to complete the transaction without the benefit of the extensive experience they brought to the process.”
During its work with NEI, FocalPoint marketed the operating assets to financial and strategic buyers while also exploring financing, plan of reorganization and other solutions for the Company and its stakeholders. Ultimately, the sale to Floramoda was determined to be the highest and best value for the creditors. Alexander Stevenson, Managing Director at FocalPoint commented, “We are very pleased to have been able to work with NEI through this often difficult process. FocalPoint has a proven track record of successfully completing transactions in challenging industry environments by effectively evaluating, communicating and executing multiple strategic alternatives contemporaneously in order to facilitate the best recovery for all the stakeholders.” In addition to managing NEI’s sale and financing process, FocalPoint also negotiated the Company’s DIP financing and provided testimony in support of the sale process and the transaction with Floramoda.
Rajesh Sood, Managing Director at FocalPoint added, “By continuously working with all the constituencies in the case, we were ultimately able to gain agreement from multiple parties with diverse interests and obtain a consensual transaction that benefits all parties. The NEI team has instituted an impressive turn-around to date and I’m sure will be an even stronger force in the industry going forward.”
Other professionals involved in the transaction for NEI included Stephen D. Finestone as bankruptcy counsel, Katten Muchin Rosenman LLP as special corporate counsel and Chelliah & Associates as turnaround advisor. Landau, Gottfried & Berger LLP along with FTI Consulting represented the Official Committee of Unsecured Creditors and Pachulski Stang Ziehl & Jones LLP represented Monterey Peninsula Horticulture, Inc.
About Nurserymen’s Exchange, Inc.
Located in Half Moon Bay, Nurserymen’s Exchange has been a leading wholesaler of indoor potted blooming, specialty foliage, and edible plants since 1941. Today NEI services a broad customer base consisting of major grocery retailers, mass merchandisers, home and garden centers, and independent operators. The Company is known for its BloomRite® brand and signature crops including Parade®, Victory®, Palace® Roses, Get Mee® Campanula, Sun Star, and European Tree®.
About FocalPoint
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm serves middle market clients throughout the U.S.
Please contact Alexander Stevenson at 310-405-7080 or Rajesh Sood at 310-405-7050 with any questions about this transaction.