- Company owns a number of injection molding plants throughout North America, including the Midwest, Toronto and Mexico. The client base includes prestigious names in the appliance, automotive and consumer-goods industries.
- The company is the result a roll-up strategy, which combined 12 mid-sized plants mostly in the same geographic area that served the same group of customers.
- The company had missed its projections on a number of occasions, new CFO came into what had become a revolving-door position, a major system initiative to convert the company onto a single platform was underway, and the company was in covenant default.
- A complicating factor was that the bank group agent had exposure in several other deals with the same private equity firm.
- Assessed the company’s projections, business plans, operations and personnel.
- Our operations team visited a number of the plants in Canada, Mexico and the U.S. to perform individual in-depth assessments of management and the plants. We combed through the company budgets and projections.
- Presented assessment and findings to the bank group and to management and then became part of ongoing management meetings.
- Given our assessment, the banking agent felt confident to restructure its various loans, and the company was given the capital to grow by its private equity owner.
- Although the company continues to struggle with the difficult economic climate, it is now stabilized and its financial performance is relatively predictable.
- We continued to monitor the company’s performance and to provide advice to the bank group in this ongoing workout.