manufacturer of branded and private label sprayers for lawn & garden products

$75M Revenue

Company Overview

The Company is a multi-plant blow molding manufacturer of consumer and industrial sprayers for home, lawn & garden, public health and pest control applications.  The Company’s revenues are $70 million with domestic and international manufacturing facilities.

Engagement Overview

The Company retained Fort Dearborn to develop an operating plan and identify and implement profit improvement initiatives. 

With Fort Dearborn’s assistance, the Company successfully:

–Consolidated from three plants to two facilities prior to its seasonal uptick;

–Reduced the SG&A expenses by $500,000 through a reduction in force, changing public accounting firms and health care expense adjustments; and

–Implemented price increases on certain parts and customers based on customer profitability analyses prepared by FDP and management.

These initiatives generated over $3 million in annual profit improvements and returned the Company to profitability.

Additionally, based on FDP’s inventory movement analyses, management implemented several actions to reduce inventory during the seasonal peak by over $4,000,000 and permanently by $2.5 million.  This reduction created significant availability on its borrowing base during its seasonal peak.

Results

Consolidated from three plants to two plants resulting in annual savings of approximately $1.5 million.

Reduced inventory by several million dollars by improving forecasting sales by customer by SKU, resulting in better manufacturing throughput and focus on selling slow moving parts.

Recommended the hiring of a global supply chain manager

Identified and recommended targeted price increases on certain customers based on profitability analyses.

FDP News

Oct - 22

Alice Chan joins Fort Dearborn Partners

Fort Dearborn Partners is pleased to announce that Alice Chan has joined our firm as a Director.

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Sep - 22

Bears Win Season Opener!

Not even the worst flooding in 2 years could stop the Bears from winning their season opener.

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Jun - 22

Fort Dearborn advises HF Foods Group, Inc. - Sealand Food, Inc.

Fort Dearborn Partners (FDP) is pleased to announce we served as sole financial advisor to HF Foods Group, Inc. (NASDAQ:HFFG) in its transaction with Sealand Food, Inc.

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