TSE Brakes, Inc. is a privately-held manufacturer and marketer of spring brake actuators and components for commercial vehicles. TSE offers one of the most extensive selections of high-quality diaphragm brake actuators of any manufacturer worldwide. Its products are featured as standard equipment for many of the world’s leading axle OEMs, trailer and truck OEMs.
Client Goals
555 was retained to assist the shareholders of TSE—a multi-generation family owned business--in assessing liquidity scenarios, including the potential sale of the business.
Solution
Sale of 100% of the Company, with a significant share of the seller proceeds donated to charity.
After a thorough market test, 555 structured and negotiated a transaction with Marmon Highway Technologies, a Berkshire Hathaway company. Marmon manufactures undercarriage products, including Webb Wheel brake drums, rotors and hubs, Leland brake and wheel parts, Triangle suspension systems and components, and Marmon-Herrington axles and transfer cases for all-wheel drive applications. TSE’s shareholders received a favorable valuation and tax benefits resulting from the donation of a significant share of the transaction proceeds.