Founded in 1892, the Company is a manufacturer and distributor of building materials sold primarily to residential builders and remodelers. The Company operates lumber yards, manufacturing operations and specialty centers in Illinois and Indiana.
The Company experienced declining revenues and incurred operating losses. Despite cost cutting and profit improvement efforts, the Company was unable to operate within the terms of its senior debt facility. As a result, the owners decided to sell the business.
Fort Dearborn played a vital role as the Company's exclusive financial advisor by identifying and screening potential buyers and advising on the terms of the sale.
The transaction was completed on an expedited basis with a purchase agreement being signed within 60 days of the start of Fort Dearborn's marketing efforts.
During this period, Fort Dearborn was able to maintain the Company's senior lender’s confidence that a sale transaction could be consummated, despite the Company‘s increasing level of financial distress.
The Company sold substantially all its operating assets to the portfolio company of a private equity firm through an out-of-court proceeding known as an Assignment for the Benefit of Creditors ("ABC").
Additionally, Fort Dearborn’s testimony before the U.S. Bankruptcy Court resulted in the dismissal of a petition from the Company’s creditors to convert the ABC to an involuntary bankruptcy. Avoiding bankruptcy preserved the transaction and saved over 150 jobs.