The Company is an international market leader that designs, manufactures and sells equipment for the corrugated box industry, with worldwide paper manufacturers as its primary customers. 

The Company maintained four locations - two manufacturing plants in the United States, a distribution facility in Europe and a plant in India.

Due to industry conditions and a major new product introduction, sales had declined from approximately $190 million to $150 million, with significant losses. 

The Company had a complex balance sheet structure, with a $65 million, multi-bank credit facility ($25 million in an over-advance position and significant subordinated debt).

Fort Dearborn Partners worked with management to improve annual profitability by approximately $20 million.  These improvements, coupled with significant reductions in accounts receivable, extensions of accounts payable and dramatic decreases in inventory, resulted in a $10 million reduction in revolver usage over a four-month period. 

Additionally, two of the Company’s facilities were significantly right-sized to support the reduced business needs at the time.  Even while the corrugated box industry was slow to recover, the Company remained cash flow positive.

The profit improvement and working capital reduction allowed management to continue to operate the Company.