Precision Marshall Steel

Navigating a Company Purchase, Sale-Leaseback & Covid-19 Purchase

Precision Industries is an approximately 100,000 SF Industrial Facility in Washington, PA.  Precision was approached by Live Ventures (NASDAQ: LIVE) in 2019 to purchase their entire business, including their corporate headquarters and manufacturing facility in Washington, PA.  The company has been in business for over 75 years and was being held by the 2^nd generation heirs of the company founder.  The CEO reached out to Tashakorian to find a potential buyer who would be willing to be the landlord to the company that would help offset some of the capital required to purchase the business.

Tashakorian was successful in not only securing the buyer, but also negotiating a single-tenant absolute net leaseback between the seller and buyer, securing 65% LTV financing for the buyer amidst an economic downturn with many lenders leaving the market, and navigating through a 1031 exchange and closing 1 day before the deadline.  This was the result of months of research, not only into the company itself and its books, debt & competitors, but the industrial market in Pittsburgh where the property was located. Multiple leasing scenarios at different rates and terms were modeled extensively until the correct combination of rent and term was found and successfully pitched to the buyer.

Founded in 1948 and headquartered in Washington, Pennsylvania, Precision Marshall Steel Company (“Precision Marshall” or the “Company”) is a leading value add supplier of prefinished tool steel and alloy plates, ground flat stock, and drill rod to distributors across the globe.  The Company’s products are primarily used by tool-builders to manufacture dies and molds that produce metal and plastic components for a variety of end markets, including automotive, appliance, and aerospace.  The Company has built a reputation for its quick turnaround of top-quality products and steadfast commitment towards ensuring that its robust product portfolio is always stocked so that the customer gets what they need, when they need it. Precision Marshall also offers three trademarked proprietary materials, which contain mechanical properties that have been scientifically proven to outperform and outlast comparable products in the market.