Second Bite of the Apple
Two founders of a successful industrial distribution business seek liquidity, but want a partner who will help them achieve future growth goals and allow them to participate in the upside.
In the early 90s, two business partners, Tom Haffner and Hartmut Kossack founded P.T. International Corp., which quickly grew into a leading provider of industrial power transmission products with a particular leadership position in the metric products market.
After building the business and driving strong growth for nearly two decades, Tom and Hartmut had created meaningful value, but their net worth and their families' net worth, was largely tied up in the business. They wanted a way to realize some of that value today, and to diversify their investments, but they didn't want to hand over the business and walk away. In fact they were excited about the future growth prospects and wanted a partner to help them achieve their future growth goals, while allowing them to maintain meaningful ownership levels and active roles with the Company. Could they have their cake and eat it, too?
A partnership with Tonka Bay made it all possible. Tom and Hartmut were able to accomplish all of their personal and professional goals while making sure their business was in good hands. They were able to realize liquidity and a significant return on their many years of work by selling part of the business, while at the same time, reinvest in the business and gain a partner who could help them build the infrastructure the business needed for the next level of growth. The founders' reinvestment in the Company as partners with Tonka Bay will allow them the chance to reap the rewards from the next phase of growth and the next exit; a "second bite of the apple."
"I'm proud of the business we have built and look forward to beginning the next chapter together with Tonka Bay", said Tom Haffner. "I am just as excited for the next five years as I have been for the past 18! Tonka Bay has helped Hartmut and I achieve everything we hoped to in finding a partner, they come to the table with significant relevant industry experience and contacts through their investment in AST Bearings and we know that they will be good stewards of our business and employees."
"We are thrilled to be working with PTI", said Molly Simmons, a Principal at Tonka Bay and PTI board member. "Tom and Hartmut have created an incredible company and strong leadership position in their market niche. We look forward to achieving our future goals together."