manufacturer and distributor of health & beauty products to major retailers

$95M Revenue

Company Overview

The Company is a Branded Personal Care Products Manufacturer with $100 million in sales that was acquired from a Fortune 500 company in a leveraged buy-out transaction.

Engagement Overview

FDP assisted the Company in strengthening the brand name recognition across all distribution channels through new sales programs and new product offerings previously earmarked for specific customers.

Fort Dearborn reduced private label manufacturing for certain national retailers, shifting focus to current brands.

FDP introduced a SKU reduction program based on sales, profitability and inventory turns analyses.

FDP helped the Company increase profitability by reducing costs and improving efficiencies in warehousing and distribution areas:

–Consolidation of product shipping points;

–Implemented a repackaging strategy;

–Established minimum order quantities to optimize sales; and

–Performed analyses and revamped the logistics function which led to significant savings.

Fort Dearborn aided the Company in defining formal New Product development justification / hurdle criteria.

The Company implemented pricing and cost reduction initiatives.

Ultimately, FDP led the initiative to outsource manufacturing to reduce excessive costs due to an antiquated manufacturing facility, and union labor legacy issues from previous owner.

Results

The Company shut down one of its plants and outsourced its manufacturing to a contract manufacturer at substantially reduced cost.

Fort Dearborn negotiated forgiveness of $12 million of subordinated debt, 57% of the total sub-debt.

FDP advised the Company and located an angel investor, who provided $9 million of much needed new capital.

Fort Dearborn negotiated the transfer of significant real estate collateral from the old sub-debt holder to the new sub-debt holder.

FDP News

Feb - 21

2020 Year in Review

Chicago, IL - Despite the rollercoaster ride that was 2020, we at FDP are proud to say that, thanks to our resilient and trusting clients, hard-working and talented staff,... Read More

Sep - 20

Fort Dearborn Advises Motor Distributor

Fort Dearborn Partners served as a financial advisor for the refinancing of a $3.5M Line of Credit and $2.2M mortgage for a $20 million Illinois-based motor distributor coming... Read More

Jul - 20

Fort Dearborn Advises Private High School

Chicago, IL - Fort Dearborn Partners is pleased to announce that we served as exclusive financial advisor to a private high school for the refinancing of $13,000,000 in... Read More