Financially Stabilizing a Multi-plant Roll-Up

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Challenge


  • 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.

 

Solution

  • 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.

Results

  • 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.

 

Daniel F. Dooley

Dan Dooley, CTP, is a Principal and CEO at MorrisAnderson based out of Chicago. He has a strong national reputation in crisis management, operations improvement, debt refinancing/restructuring and C-level positions. He is a frequent speaker at industry conferences and a regular author for industry periodicals. Dan has served on the Board of Directors of both Read More