Overview
Founded in 1987 and headquartered in Downingtown, PA, Haverford Systems, Inc. (“HSI” or the “Company”) is a leading audio-visual manufacturer and solutions provider. Through its PTZOptics brand, HSI designs and manufactures an award-winning portfolio of video cameras, controllers, software and accessories used in professional video production and collaboration environments worldwide.
In addition to its manufacturing operations, HSI provides audio-visual integration services to businesses across the Greater Philadelphia region. Operating at the forefront of AV technology, the Company designs, customizes, installs and maintains a broad range of solutions, including streaming and conferencing systems, integrated control systems, education technology solutions, video surveillance, wayfinding technology, sound masking and digital displays.
HSI serves a diverse set of end markets, including corporate, government, health care, manufacturing, sports and senior care. The Company is community-minded and committed to sustainability. Management attributes HSI’s decades-long success to its tech-forward workforce, whose expertise and commitment to service drive high-quality project execution
Situation
HSI owners had prepared for an ownership exit by transitioning day-to-day business operations to the next generation of management and ultimately sought a business succession strategy that would reward the commitment of their employees with the benefits of future success, sustain Company growth and allow for a liquidity event for exiting stakeholders. After a thorough analysis of alternative options, a 100% employee stock ownership plan (ESOP) achieved all the desired goals for the business’ evolution.
Solution
HSI engaged SES ESOP Strategies (SES) and its affiliated law firm, Stevens & Lee, to structure the ESOP transition plan. SES team members conducted financial due diligence and modelled the proposed ESOP structure. They managed critical elements of the transaction, including a capital raise, trustee selection and due diligence, term sheet negotiations and guidance through closing. Across this process, Stevens & Lee attorneys assisted with the sale and prepared transaction-related documents and negotiated the financing agreements with the Company’s senior lender.
“Rewarding the commitment of our employees was our top priority in planning the evolution of our business,” said Joseph Mulcahy, President of HSI. “SES and Stevens & Lee provided exceptional client service, guiding the financing and technical details of the transaction and positioning our workforce to benefit from the future success of the company.”
For more information on this transaction, please contact Ed Renenger, President and CEO, at 610.478.2238, Vince Capone, Sr. Vice President, at 215.508.7716, , Kyle Priebe, Sr. Associate, at 215.508.5637 or Davis Rosato, Sr. Financial Analyst, at 215.508.7706.