PPC Advises Cotta Transmission on Ownership Transition

Promontory Point Capital is excited to announce another one of our firm's recent client successes.

Based in Beloit, Wisconsin, Cotta Transmission Company designs and manufactures highly durable, tight tolerance gearboxes and transmissions required by niche industry segments including aerospace, heavy duty vehicle, mining, oil field service, water treatment, and other specialty markets. The Company’s legacy spans more than 100 years supporting an industry respected reputation for providing highly engineered products backed by world class service.

As the Company’s Board of Directors contemplated Cotta’s next phase of growth and investment, leadership decided that the timing was right to explore strategic and financial options for the business. Cotta’s ownership and leadership team were introduced to Promontory Point Capital and PPC was subsequently engaged to serve as the Company’s investment banker. PPC’s engagement included preparing materials to market the company for sale, leading outreach efforts to a targeted list of potential strategic & private equity acquirers, and soliciting competing offers from multiple parties. These efforts culminated in negotiating and signing a Letter of Intent between Cotta Transmission Company and Salt Creek Capital. With over 150 completed transactions, Salt Creek Capital partners with experienced industry operators to acquire, invest, and grow privately-held companies. PPC managed the entire sale engagement and assisted in closing this transaction during the fourth quarter of 2022 representing another successful Done Deal for our firm.

Promontory Poin t C apital is a Milwaukee-based investment banking firm focused on the needs of Midwestern privately-held businesses. Since being formed in 2004, our firm has led over 160 client engagements including the evaluation of business sale and recapitalization options, the arrangement of debt and equity financing, and the planning and execution of growth strategies involving acquisitions, mergers, and joint ventures. Many inquiries to Promontory Point Capital include business objectives encompassing:

Ownership Planning, including Transition & Liquidity Goals: PPC is frequently introduced to business owners and/or senior management teams when shareholders are interested in learning about their options involving a potential sale of all or a portion of a business. We have arranged numerous transactions involving strategic partners, private equity firms, ESOPs, management buyouts, and other types of shareholder “recaps” including both minority and majority recapitalizations.

Financing, Refinancing, & Debt Restructuring: PPC is oftentimes referred into situations where a business encounters a funding need that is beyond the comfort zone of a company's existing senior bank lender. PPC has arranged numerous transactions for companies involving senior bank debt, non-bank debt, subordinated debt, sale-leaseback financing, and other forms of institutional funding to support growth, acquisitions, shareholder redemptions, management buyouts, and other corporate initiatives.

Strategic Growth/M&A: Companies that have an interest in growing and expanding via acquisition or strategic joint venture are regularly referred to PPC given our firm's extensive corporate development experience.

We welcome your confidential inquiry and encourage you to visit our firm's website at www.promontorypointcapital.com for more information on our organization's capabilities and numerous other client successes.