The Company is a $100 million processor of animal specialty proteins with multiple plant operations.
The Company was acquired in a highly levered deal by a private equity firm.
The Company operated four businesses: Dairy milk replacer/animal feed ingredient processor; pet milk replacer and supply operation; fur animal feed ingredient; and, a startup salmonella chicken vaccine.
Lost its major customer, which comprised 35% of its revenue base.
Suffered through significant sales decline and incurred very serious operating losses for two years prior to our engagement.
Fort Dearborn Partners assisted management in returning the Company to profitability by reducing headcount, consolidating two plant/distribution facilities into one and raising prices on certain key customers.
The Company completed a balance sheet restructuring that resulted in a deferral of interest payments and a change in ownership control.
Fort Dearborn successfully advised the Company on the restructuring of its mezzanine debt to preferred stock and common stock. The sub-debt holder assumed operating control of the Company as part of conversion.