Distribution of food service and janitorial/sanitation products

$170M Revenue

Company Overview

The Company is a regional distribution company serving supermarkets and food processors with in-store plastic, paper and consumable products.  The Company has six distribution facilities located in Texas, Louisiana, Illinois and California.

The Company grew rapidly, was undercapitalized, had antiquated information systems, and needed new management talent.

The Company had unreliable financial reporting and weak operational tracking statistics.

Engagement Overview

FDP was hired to perform an operational assessment and develop a profit improvement plan.

During Phase I, FDP prepared an assessment focused on recent operating performance and proposed an immediate action plan to address critical cash flow issues

Phase II involved the preparation of a monthly financial forecast, which indicated a capital need and an 18-to-24-month turnaround.

FDP developed an operating plan to improve profitability:

–Reduce operating expense over $2M,

–Reduce inventory levels by $5M,

–Ceased an ERP implementation – a two-year savings of over $2,000,000 -  and instead upgraded the existing systems,

–Improved gross margins by approximately $1M through better purchasing practices

–Sold non-core business operations, and

Subsequent to the development of the operating plan and forecast, FDP served as Interim CEO to provide leadership during the implementation phase and to assist the board of directors in monitoring its progress.

Results

FDP materially improved the operating performance of the Company.

FDP negotiated the sale of unprofitable non-core business units.

FDP executed to the operating plan, including the recruitment of several senior management positions and hiring a permanent CEO to replace the FDP Interim CEO.

FDP improved the financial reporting and developed KPIs for daily and weekly review.

FDP News

Dec - 21

Fort Dearborn Partners advises Foodservice Provider

Fort Dearborn Partners, Inc. served as the exclusive financial advisor to an Illinois-based foodservice provider and refinanced $17,500,000 of debt.

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Jul - 21

Brian Hartford joins Fort Dearborn Partners

Fort Dearborn Partners is pleased to announce that Brian Hartford has joined the firm as a Senior Director.

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May - 21

Fort Dearborn Advises Kanaflex Corporation, USA

Kanaflex Corporation USA (“Kanaflex” or the “Company”) is an industrial hose manufacturer with operations in Vernon Hills (IL), Compton (CA), and... Read More