Animal Feed Processor

Company Overview

Animal Feed Processor - A processor of animal specialty proteins with $100 million in revenues and multiple plant operations

 

Engagement Overview
•  The Company operated four businesses: Dairy milk replacer/animal feed ingredient processor; pet milk replacer and supply operation; fur animal feed ingredient and a startup salmonella chicken vaccine.

•  The Company suffered through significant sales decline, and incurred very serious operating losses for two years prior to our engagement.

•  Lost its major customer which comprised 35% of its revenue base.

•  The Company completed a balance sheet restructuring that resulted in a deferral of interest payments and a change in ownership control.

•  The Company was acquired in a highly levered deal by a private equity firm.

•  Fort Dearborn Partners assisted management in returning the company to profitability by reducing  headcount, consolidating two plant/distribution facilities into one and raising prices on certain key customers.

Results

Fort Dearborn advised the Company on the successful restructuring of its mezzanine debt into preferred and common stock.  The sub-debt holders assumed operating control of the company as part of the conversion.