Lionheart Ventures

Challenge
Lionheart Ventures, a private equity firm with offices in Philadelphia and Boston, had made a series of acquisitions within the same vertical market: burners and combustion equipment. The portfolio companies were now operating out of redundant facilities spread across the country. Lionheart, determined to drive costs down and efficiency up, engaged Allegro to assess consolidation scenarios for the various portfolio companies.

Solution
Allegro and Lionheart assessed the current facilities and locations to determine which states and local markets made the most sense from a consolidation standpoint. It was determined that two areas where operations currently existed were also optimal for the consolidation project – Northeastern Ohio and Eastern Pennsylvania. Allegro began searching for facilities for sale or lease, as well as greenfield development, that matched the specifications and conducted site tours with the Lionheart team. Through a leveraged negotiation process, Allegro was able to secure very favorable terms on the acquisition of a newer, 75,000 square foot manufacturing and production facility that also had the requisite office space built out to accommodate the consolidated management, engineering, and sales professionals.

Concurrent with the site search, Allegro was actively driving State, County, and Local incentive and financing packages that would best meet project objectives. Consequently, once the facility acquisition was fully negotiated and the necessary construction was firmly defined, Lionheart was able to finance the total project with layers of private and public financing and realize levels of tax incentives that exceeded what was initially offered to the company. By consolidating all of the facilities into a single strategic location, Lionheart will save millions of dollars annually while also increasing production capabilities and efficiency, enabling the merged organizations to start in a new location in which they will thrive.