Transaction

Custom Engineered Wheels

Business Description

Custom Engineered Wheels, Inc. (“CEW” or the “Company”) is North America’s leading designer and manufacturer of “no-flat” engineered wheel solutions, producing more than 20 million wheels annually. The Company’s broad line of products includes plastic tread-cap wheels, lightweight lost core wheels, polyurethane solutions that include solid tires, tire inserts, and casters; and other custom plastic solutions. These products are sold primarily to leading OEMs in lawn and garden, wheelchair/personal-mobility, and other industrial markets.

Background

Hamilton Robinson Capital Partners, the private equity sponsor and majority equity owner of CEW, recapitalized the Company. HRCP requested a fairness opinion to give confidence to its investors that the valuation and terms were fair from a financial point of view.

Solution

CMM performed a valuation analysis including a review of publicly traded comparable companies, recent mergers and acquisitions in the space, a discounted cash flow analysis, a review of information on the operations of the company and a review of their transaction process. CMM issued an opinion to both the buyer and the seller that the transaction was fair from a financial point of view.