WALTHAM, Mass. — Harrison Global has fully absorbed the assets, employees and vehicles of A Touch of Elegance, Inc. of Wakefield that the company bought in late January.
Since the deal closed, the two companies entered into a transition period during which they temporarily operated under separate names and websites until fully integrated, said Brett Tyson, director of organizational development for Harrison Global.
The deal was handled by broker Spencer Tenney of Arlington, Texas-based The Tenney Group, headed by veteran transportation business broker Charles Tenney. A value of the deal, which took 77 days to get done, was not disclosed due to requested confidentiality.
A Touch of Elegance Inc., founded in 1988, was owned by Mike Hafferty, who stayed on to help lead the corporate transition. The operation had less than 20 vehicles, which were bought by Harrison Global, and annual revenues of about $400,000. Tyson estimates Harrison Global annual revenues this year at $10 million to $15 million.
Spencer Tenney explained to LCT how the proposed deal originated and was fulfilled.
“Mike Hafferty came to The Tenney Group through the referral of an industry colleague,” Tenney said. “For him it was timing. He was ready for a change. He and his father were in different places. His father wanted to step away, and he had other career goals outside the industry.
“Harrison Global is one of the buyers in our network who we thought would be logical fit,” Tenney said. “We took it to them, and we were correct in understanding their goals. They hit it off. Once we got together, the deal did not take very long to get everyone on board with terms and organize the closing.”
The deal follows Harrison Global’s purchase of Xtreme Limousine in Baltimore in early 2010. Harrison Global was founded in 1986 by brothers David and Derek Marcou. In a March 2010 interview with LCT, David Marcou said the company has an acquisition strategy to gradually expand into other cities along the Eastern Seaboard, which now include Baltimore and Raleigh/Durham, N.C., with fleets of diverse vehicles.
The Marcou brothers were unavailable this week to comment on the A Touch of Elegance transaction, but David Marcou, executive vice president, said in a press release statement: “A Touch of Elegance is a fine business that complements our regional and national growth strategy nicely.”
Mike Hafferty, former owner of A Touch of Elegance, Inc., said in a press release: “This deal allowed my family to benefit financially while giving me the freedom to pursue some my personal career goals outside of this industry. Given the location and goals of Harrison Global, it was a natural fit.”
Charles Tenney said in a statement: “The deal is an excellent opportunity for Harrison to take advantage of a strong and reliable customer base while improving the overall efficiency of its operation.”
Waltham, Mass.-based Harrison Global, which emphasizes green and smart transportation initiatives, has more than 130 executive transportation vehicles in service, including 80 sedans.
Information: Harrison Global website, The Tenney Group website, or (877) 642-8033.
— Martin Romjue, LCT editor