full‐service metal recycling center

$55M Revenue

Company Overview

The Company is a full-service metal recycling center, processing Zorba and Zurik to produce aluminum, stainless steel and other heavy metals, along with recycling sheet iron and other metals.

Engagement Overview

Due to declining metal prices and difficulty procuring high-grade input material, the Company experienced operating inefficiencies leading to operating losses and very tight liquidity. The Company had also invested in its shredding and retail operations, resulting in a higher fixed cost structure.  Fort Dearborn was retained to review the Company’s operations, identify and implement profit and cash flow improvement initiatives, and to prepare forecasted financial statements.

With Fort Dearborn’s assistance, management:

–Processed lower-grade material to generate cash flow;

–Decreased purchase prices offered for certain less-desirable   materials;

–Staggered shifts to reduce overtime;

–Began implementation of procedures to weigh all inbound / outbound lots of materia,l to seek pricing adjustments with suppliers / customers to improve margins; and

–Reduced headcount in certain operating departments.

Despite profit and cash flow improvement efforts, the Company was too undercapitalized to fully execute a turnaround and management decided that the best course of action was a sale of the Company to a buyer with adequate capital.

Fort Dearborn quickly developed marketing materials and a targeted list of potential acquirers, which, along with advising ownership on managing the business and its banking relationship, enabled the Company to reach a successful close.


The Company was able to increase its cash flow in order to fulfill customer orders and maintain its customer base.

FDP advised the Company in the sale of substantially all its assets to Scrap Metal Services, LLC through an Assignment for the Benefit of Creditors.

Fort Dearborn’s sale process generated multiple indications of interest, allowing the owners to select a buyer based on strategic fit and speed to close, and some of the ownership retained employment with the buyer.

FDP News

Oct - 23

Max Bechtel and Austin Curtis join Fort Dearborn Partners

Please join us in welcoming the newest members of the Fort Dearborn Team, Max Bechtel and Austin Curtis.

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Apr - 23

Fort Dearborn advises Reliable Knitting Works

Fort Dearborn Partners served as the exclusive financial advisor for the refinancing of Reliable Knitting Works, a $125 Million Wisconsin-based Company.

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