Marquis Spas Sale

“Our legal counsel suggested we consider Zachary Scott & Co. to help us pursue the sale of our 100% employee-owned company. It was clear from our initial discussions, they had the experience, depth of staff, and understanding of the unique issues characteristic of ESOPs to take us through a complicated process for the company, the ESOP trustees and the beneficiaries, and achieve our goal of maximizing the value of our company for our ESOP participants.

As we began to prepare to market the company, satisfaction with the Zachary Scott team increased. We received clear professional guidance and assistance as we moved through each phase of the process to complete the transaction. The Zachary Scott team was extremely responsive when we had issues to discuss and showed great patience as we completed the lengthy due diligence and documentation processes.

As an ESOP, communication and documentation of the transaction required interaction with multiple additional parties including our ESOP counsel, ESOP trustee, and the trustee’s legal team. The Zachary Scott team managed this process very smoothly.

I highly recommend Zachary Scott for both the professional and the personal nature of their service. Our ESOP participants are extremely pleased with the outcome of the transaction, and we want to thank the Zachary Scott team for its expertise and hard work.”

John Schrenk, President & CEO, Marquis Corp

Zachary Scott is excited to announce the successful sale of Marquis Corp. (“Marquis” or the “Company”) to Monomoy Capital Partners. We are very pleased to have worked alongside Marquis management, Tonkon Torp LLP, and CliftonLarsonAllen transaction services in achieving the shareholder’s objectives.

Situation

Marquis is a manufacturer of innovative, premium quality hot tubs, swim spas, and related accessories. From its headquarters in Independence, OR, Marquis sells its products through a network of nearly 300 domestic and international dealer locations. Marquis has established a reputation among dealers as a premium brand in the industry through a consistent focus on delivering quality products, desirable features, and exemplary service.

Marquis was founded in 1980 and acquired by WEXCO Incorporated (“WEXCO”) in 1985. WEXCO is wholly-owned by an employee stock ownership plan (“ESOP”). After owning the business for more than three decades, WEXCO and its ESOP shareholder elected to divest Marquis.

ZS Role

Zachary Scott was retained on an exclusive basis to represent WEXCO in a sale of the stock of Marquis.

Results

Zachary Scott organized a competitive process that attracted a range of proposals from industry participants and financial investors. Ultimately the Company was sold to Monomoy Capital Partners (“Monomoy”), a private investment firm that invests in the equity and debt of middle-market businesses. Simultaneous with the acquisition of Marquis, Monomoy acquired another industry participant, Artesian Spas. Together, the companies will offer dealers and customers a full line of hot tubs and swim spas under multiple well-known brands.

Along with the sale of Marquis, WEXCO entered into a sale leaseback with Fundamental Income for the primary manufacturing facility in Independence, OR, further enhancing ESOP shareholder value.

This represents another successful outcome for a Pacific Northwest manufacturing business. Other manufacturers who have turned to Zachary Scott for assistance through a sale include Thermoforming Systems, Reichert Shake & Fencing, NII FPG Co., and HySecurity Gate.