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Unirac Case Study
About Unirac
- Incorporated in 1999, Unirac is an industry-leading manufacturer of solar photovoltaic mounting solutions
- Unirac’s customers span the residential, commercial, and utility markets and the product portfolio includes ground, roof, and pole mount solutions as well as open structure solutions
- Unirac is led by an excellent management team and funded by Global Environment Fund, a private equity fund with approximately $1 billion under management
Overview and Challenges
- Unirac received an unsolicited approach from Hilti, a global manufacturer and supplier of technology-leading products, systems, and services for construction professionals
- While Hilti was an excellent potential acquiror and its global distribution could enable Unirac to grow more rapidly outside the US, Unirac’s financial results were on a steep upward slope and the initial indication of value was interesting but not exciting to our client
- The investor group sought our advice on exit timing, possible buyer interest, valuation, and on process strategy to optimize value
Our Advice and Execution
- To evaluate the unsolicited offer, we performed detailed valuation analysis while simultaneously contacting over 50 potentially interested parties on a no-names basis to garner valuable market intelligence
- Based on our analysis and market information, we advised our client to enter into a period of exclusivity but only upon certain key criteria being met regarding price, timing and terms
- Upon satisfaction of these criteria, we structured a customized process with an initial period of exclusivity followed by a full auction if no deal was transacted; this was designed to mitigate the risk of a slow-moving buyer while also providing other exit options for our client
Enhanced Success
- Unirac was sold to Hilti for 14x capital invested and named Wall Street Journal’s “Exit of the Week”
- The management of Unirac continues to drive market share and deliver meaningful profitability to Hilti
- Together, Unirac and Hilti are working to deliver lower BOS for PV customers worldwide and help drive PV levelized cost of energy lower for the benefit of consumers and the environment
