manufacturer of engineered clamps largely for heavy truck applications

$60M Revenue

Company Overview

The Company is a leading supplier of heavy-duty, engineering clamps operating from two manufacturing facilities in Illinois and Juarez, Mexico and one distribution facility in Texas.

Company’s customers are primarily large OEM tractor trailer manufacturers.

Engagement Overview

As a result of mounting operating losses, the Company informed its senior lender that it would need approximately $1.6 million in order to address vendor issues and other short-term cash needs.

The Company engaged FDP to develop an operating plan that would return the Company to profitability.  In addition, FDP would prepare the Company’s 13-week cash flow and monthly financial forecast.

With declining sales volumes, FDP immediately implemented overhead expense reductions which quickly aligned the Company’s cost structure with current and forecast sales volumes.

FDP initiated a sales-leaseback transaction providing additional capital from the Company’s real estate.

FDP reviewed SKUs for profitability, initiating price increases on unprofitable SKUs.

FDP quickly reduced overhead expenses to align with current and forecast sales volumes.

FDP review SKU profitability to determine needed price increases on unprofitable SKUs.

Results

FDP developed a sales-leaseback strategy to allow the Company to access nearly $1 million in equity.

Company returned to break-even in short-order and better aligned to be become profitable once sales volumes returned to normal.

FDP News

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Apr - 22

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Dec - 21

Fort Dearborn Partners advises Foodservice Provider

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