manufacturer of powdered food and nutritional products

$150M Revenue

Company Overview

The Company has two wholly-owned subsidiaries and multiple plants throughout the Midwest.

Subsidiary 1: breaks, separates and processes shelled eggs, and dries egg liquid into powder primarily for ingredient and foodservice customers. 

Subsidiary 2: manufacturers and packages agglomerated, dispersible and coated specialty ingredients.

Engagement Overview

Subsidiary 1 was in the process of executing a strategic plan to diversify its product offering and consolidate/upgrade/relocate its production facilities.  During this time, the Company also faced margin pressure due to challenging market conditions and high input costs. As a result, the Company suffered significant operating losses for two consecutive years.

Subsidiary 2 experienced the loss of two key customers, resulting in significant volume loss, but remained profitable.  Within a year, the Company secured 4 new major customers.  However, these customers required the Company to make significant capital investments in order to retain the business.

Fort Dearborn was engaged to review and revise the Company’s strategic plan and financial forecast.

As part of the process, FDP developed a thorough understanding of the Company’s operations, its sales and hedging strategy, as well as its purchasing contracts and commitments. 

FDP worked with management to refine its hedging strategies, revise its procurement practices and to develop a robust cost accounting for its products.

Results

Fort Dearborn was instrumental in assisting the Company with obtaining additional financing from its existing lender, through a credible and thorough financial forecast process, to provide a bridge until the owners of the Company decided to sell. 

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