Majestic Packaging was a manufacturer of packaging materials with facilities in Brooklyn and Bohemia, NY. The business operated in an industry with large capital investment requirements, presenting Majestic’s shareholders with several strategic options – consolidate its two facilities into a single more efficient plant, invest additional dollars in newer more efficient equipment or take cash off the table by selling the business. Based on the ages of the shareholders and the risks inherent in this “commoditized” business, the decision was made to sell the business.

Majestic retained DAK to manage the transaction, which began with targeting the buyer that would allow the shareholder’s to maximize value. DAK identified Seaboard Packaging, a multi-plant packaging manufacturer that sought a New York presence. Seaboard had recently invested millions in new equipment that was being underutilized and would benefit from Majestic’s sales volume. DAK negotiated a "win-win" transaction that included a significant cash payment, employment agreements for the principals, continued employment for Majestic’s workers, expanded capabilities for Majestic’s customers and the critical mass and profitability that materially increased Seaboard’s value and made it an attractive acquisition target.