Deal Type
Sell-side transaction

Deal Team
Chris Rowe

Company Overview
Midwest Sport and Turf Systems (MWSTS) provides complete design build services for all sports construction associated with synthetic turf playing fields, including synthetic turf sales, installation, design build, maintenance and repair along with field removal. Founded in 2013 by Jody Factor, MWSTS has become a leading provider and constructor of synthetic turf systems for schools, universities, municipalities and other customers throughout the Midwest.

Situation
FourBridges has a relationship with TenCate Grass (TCG), having represented two different clients in sales to the global leader in the development, production and marketing of synthetic turf components. In 2018, FourBridges represented Challenger Industries in a sale to TenCate, followed by TenCate’s acquisition of Geo-Surfaces. When Chief Executive Officer of TenCate Grass North America, Joe Fields, became interested in purchasing MWSTS, he referred founder Jody Factor to Chris Rowe of FourBridges to assist Jody in completing a transaction with TCG.

Challenge
Like many business owners, Jody didn’t run his business to sell it but he had a good idea of his cash flow. In order to get the maximum value for the company, his financial statements needed to be presented in percentage completion format, a construction industry standard, for the past three years. This format can be difficult to create when a company hasn’t historically tracked its financials in this manner. Not only did it affect the profit and loss statement, but the balance sheets and the working capital required to remain in the business.

In addition, TCG was in the process of being sold by Crestview Partners to Leonard Green & Partners. This created some timing challenges as it was imperative that the MWSTS sale was complete before Leonard Green closed the acquisition of TCG. 

Process
A former attorney, MWSTS owner Jody Factor negotiated part of the deal himself. He relied on FourBridges to draft and improve the LOI, convert his financials into percentage of completion format, and negotiate the finer points of the sale including working capital. Rowe also connected Factor with an established M&A attorney, guided the process through the extensive diligence process, and worked with the attorneys to ensure that Factor did not take on any unknown liability.

Result
The FourBridges team helped Jody Factor complete the deal in a timely manner and achieve full value based on the terms that were negotiated. This transaction reflected Jody Factor’s goals to protect both MWSTS’s key employees as well as his family. He will remain at the helm of Midwest Sport and Turf Systems as the company continues to expand its presence bolstered by TenCate’s globally integrated resources.