The Company is a market-leading distributor located in the Upper Midwest, serving over 1,500 dealers in the region and nearby areas, as well as e-commerce customers across North America and more than 250,000 drop-ship customers each year. 

The Company offers a wide range of products, distributing over 30,000 items from more than 500 manufacturers.

Following a leveraged buyout, the Company experienced several years of success but then struggled with a significant decline in customer demand.  

A prolonged industry recession adversely impacted the Company’s cash flows and ability to service debt. Sales decreased by approximately 40% in one year. 

The equity sponsor determined it was no longer feasible to support the Company with further equity contributions. Fort Dearborn Partners was engaged by the Company as Chief Restructuring Officer, performing a strategic options analysis which indicated there was adequate cash runway to support a sale process to maximize proceeds to all stakeholders.  

FDP led a robust sell-side investment banking process, including the creation of a confidential information memorandum and quality-of-earnings analysis, as well as outreach to over 200 buyers. 

By way of an Assignment for the Benefit of Creditors (ABC), the Company was ultimately sold to a middle-market private equity firm, saving more than 150 jobs.  

Fort Dearborn successfully facilitated the sale of substantially all of its assets, despite continuing losses throughout the sales process and softness in industry demand.