Simula, Inc. designed and manufactured systems and devices for military aviation safety, military personnel safety, and land and marine safety. Simula retained RA Capital Advisors to advise the company in responding to an unsolicited offer for the company that was later withdrawn. Following, RA Capital Advisors advised the board of directors on several operational issues, including a change of top management.
RA Capital was re-engaged the following year to review restructuring alternatives. Ultimately, the company raised $25 million of mezzanine debt to replace an unfriendly lender. RA Capital Advisors worked with the CEO to review options to raise additional capital, including selling a non-core division and divesting certain product lines and joint ventures.
A year later, RA Capital Advisors was asked to explore all strategic alternatives including sale of the company or a comprehensive restructuring of the balance sheet. The board determined that a parallel path (sale and refinance) was the preferred course of action. After a broad process in which over 350 parties were contacted, Simula agreed to be acquired by Armor Holdings in a transaction valued at $110.5 million. From the start of the sales process to the final sale, RA Capital helped guide Simula to realize a 70% increase in equity value.
- Industry: Aerospace and Defense
- Deal Type: M&A – Sell-side, Strategic Advisory, Financing
- Location: Phoenix, AZ