The Company was a leading Midwest-based steel service center serving original equipment manufacturers and steel fabricators. The Company’s services include precision shearing, slitting, leveling, cutting, edging and sawing.

The Company’s customers serve multiple end markets including heavy-duty truck parts, military equipment, medical equipment, industrial cabinetry, industrial racking, recreational vehicle manufacturing and others.

Fort Dearborn played a vital role as the Company’s exclusive financial advisor for this transaction by identifying and screening potential buyers and negotiating the terms of the sale of substantially all its assets, including the Company’s real estate.

The transaction closed in less than 120 days from the beginning of Fort Dearborn’s engagement.

Additionally, Fort Dearborn used its profit improvement consulting skills to identify and implement cost savings initiatives that resulted in an increased selling price.  Subsequent to closing the transaction, Fort Dearborn assisted in negotiating a favorable settlement on working capital adjustments.

Challenges to completing the transaction included Fort Dearborn maintaining the senior lender’s confidence that a sale transaction could be consummated and keeping multiple bidders interested despite the divergence of their goals and objectives, and the Company’s increasing level of financial distress.

Due to significant decreases in steel prices preceding the engagement, the Company experienced declining revenues and incurred operating losses. Despite cost cutting efforts, the Company was unable to operate within its senior bank line-of-credit facility or to service its debt.  As a result, the owners decided to sell the business.

The Company sold substantially all its assets to Chicago Steel & Iron, LLC, a portfolio company of Rock Island Capital, LLC.  The Company was sold through an Assignment for the Benefit of Creditors.