The future of a business can take more than one form. Understanding the proposed changes matters as much as understanding what will continue.
ThirdSide Capital advised Garland on its sale. In a June 30, 2021 announcement ↗, Pen Company of America said it had acquired Garland Writing Instruments and Ben-Art Manufacturing in separate transactions on June 28.
The business and the announced plan
The buyer described Garland, based in Coventry, Rhode Island, as a manufacturer of American-made metal writing instruments with a history dating to 1927. Pen Company of America manufactured plastic writing instruments and described the acquisitions as a way to broaden its product range.
The announcement said Garland and Ben-Art would relocate to the buyer’s New Jersey manufacturing facility. The plan combined product capabilities in one location, making the future operating footprint a concrete part of the transition.
Ask what continuity would mean in your situation
Our perspective is that an owner’s priorities need specific language. Continuity might concern a company name, a product, customer support, employment, a location or several of those at once. A buyer’s plan can support some objectives while changing other parts of the operation.
Those differences deserve a direct conversation. If location is important to you, say so early. If a product’s future matters most, ask how the buyer intends to support it. Avoid assuming that a shared use of the word “continuity” means both sides have the same picture.
Examine the proposal in full
A proposed transition can preserve a product or brand while changing the way the business operates. Identify what you welcome changing and which questions need a clear answer before you move forward.
For owners considering their own transition, the practical lesson is to evaluate the financial terms and the proposed future together. Identify the questions you need answered, discuss the tradeoffs with your advisors and assess what the actual proposal would mean for the company and for you.
View the transaction overview →Sources & context
Prepared using the dated releases and announcements below. Practical observations are ThirdSide’s editorial perspective. Transaction plans are described as announced; economic estimates may be revised.
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