Eland Logistics specializes in green coffee supply chain management across Canada. At the time of the transaction, it was Canada’s largest green coffee supply chain manager. Eland provides logistics services (customs clearance, load brokering and freight) and warehousing services (storage, weighing, sampling, reconditioning and salvage) to its customers which are domestic coffee importers.
NewPoint was retained as exclusive financial advisor by a buyer consortium to assist in the purchase of Eland. NewPoint played a central role in structuring the transaction, raising the necessary tranches of capital and structuring a post-acquisition balance sheet that was appropriate to fund the future growth of the business.
Eland was purchased from its founder, who had successfully grown the business and was ready to diminish his role in the day-to-day management of the company. NewPoint played an integral role in developing a payment structure that satisfied the buyer’s desire to minimize the upfront cash paid while allowing the seller to retain a finite interest in the medium-term growth of the business.
Management Buy-In Provides Liquidity for Founder.