Following the 2001 recession, McDermott International (NYSE-listed) began looking for a buyer of its subsidiary, Hudson Products Corporation (the world leader in the manufacture of air cooled heat exchange systems for the energy industry). Although Madison’s bid did not win the initial auction process that was held by the company’s investment bankers, Madison made it clear to McDermott that if they had any issue with the sale process, Madison would step in with no change to their price or terms.
In fact, the sale process with a buyer failed and McDermott called Madison to get the deal done at our original price. Two issues surfaced: McDermott needed the deal closed in 4 weeks and Madison had to get comfortable with an extremely complicated issue that had surfaced. Madison agreed to close in 4 weeks and accepted the new risk … all at the original price.
McDermott needed a transaction done and was in a potentially bad position. However, Madison delivered and greatly assisted McDermott and their management team. This was all done in a very short time frame with no disruption to their business.
Today, Hudson’s revenue has more than tripled as the vibrant US energy market has taken off.
Madison closed the transaction in 26 days with no disruption to our business