Situation
Star Seed, founded in 1920 and located in Osborne, Kansas, is a producer and value-added distributor of conservation and farm seeds to more than 1,000 customers throughout the United States. Star Seed’s private equity owners were nearing the end of their investment and sought an advisor that had industry expertise and a presence within the region. They hired CC Capital Advisors (“CCCA”) to represent Star in a sell-side transaction process.
Approach
Star Seed’s remote location and perceived commodity risk required CCCA to strategically identify potential buyers that have a history of owning and operating companies located in rural areas and would understand the seed industry. CCCA identified and contacted strategic and financial potential buyers, created marketing materials that carefully highlighted the investment opportunity and solicited offers from several qualified buyers.
Outcome
CCCA ultimately helped Star Seed execute a transaction with Sequel Holdings, a food and agriculture focused private equity firm based in Dallas, Texas, that has the industry expertise and operational knowledge to help the Star Seed management team achieve its growth objectives. The transaction resulted in a valuation that far exceed owner expectations and provided the young management team with the opportunity to grow the company alongside its new majority owner.
