Rivkin Team Facilitates Sale of HVAC Distributor to Private Equity

This month, Stella Lellos led a team of Rivkin Radler lawyers in the sale of client Motors & Armatures, Inc. (MARS) to private equity firm Platinum Equity. MARS, based in Hauppauge, NY, supplies heating, ventilation, air conditioning, and refrigeration products in the U.S and Canada.

Requiring coordination with Canadian counsel, the deal was structured as the sale of membership interests following a reorganization under IRS Sec. 368(a)(1)(F).

The transaction was multifaceted and required a team approach.  The M&A team was comprised of Stella, Avi Sinensky, Jenson Wang and Lindsay Brocki. Wearing different hats, the antitrust issues were handled by Stella and Lindsay; Matthew Zangwill dealt with the real estate matters; Michael Heller addressed financing issues; and Louis Vlahos, Bernadette Kasnicki and Paul Schwabe advised on the tax matters.

The Chernoff family and company management retained a significant ownership stake in the company, and MARS CEO and President Eddie Chernoff will continue to lead the business.

Platinum Equity, a global investment firm founded in 1995, specializes in mergers, acquisitions and operations. It acquires and operates companies in a range of markets including manufacturing, distribution, transportation and logistics and other industries.