A leading manufacturer of branded and private label cough drops, mints and candies.
Despite a history of solid performance, the Company suffered a major setback stemming from a commercial dispute with a large customer. The dispute resulted in a significant decrease in sales volume, a strain on the Company’s cash flow and ultimately led to the Company being in default of its credit agreement.
Fort Dearborn Partners initially assisted the Company with profit improvement strategies to strategically increase prices, reduce overhead expenses and improve working capital management.
The ongoing capital constraints convinced Fort Dearborn to recommend that the Company pursue options to generate liquidity, including selling the Company and raising capital to de-leverage.
Pursuing a dual strategy, our process generated multiple visits from both financial investors and strategic buyers, leading ultimately to a transaction with Gordon Brothers Group, LLC through a sale of the Company’s senior debt, which provided the Company with the liquidity to continue to operate independently, and pursue the owner’s growth strategy.