Building Products Distributor

Company Overview



Building Products Distributor - Founded in 1892, the Company is a manufacturer and distributor of building materials sold primarily to residential builders and remodelers.  The Company operates lumber yards, manufacturing operations and specialty centers in Illinois and Indiana.

Engagement Overview

At the time of our engagement, due to the unprecedented collapse of the U.S. housing market and overall economic downturn, the Company experienced declining revenues and incurred operating losses.  Despite cost cutting and profit improvement efforts, the Company was unable to operate within the terms of its senior debt facility.  As a result, the owners decided to sell the business.

Fort Dearborn played a vital role as the Company's exclusive financial advisor by identifying and screening potential buyers and advising on the terms of the sale.  The transaction was completed on an expedited basis with a purchase agreement being signed within 60 days of the beginning of Fort Dearborn's marketing efforts. During this period, Fort Dearborn was able to maintain the Company's senior lenders' confidence that a sale transaction could be consummated despite the Company‘s increasing level of financial distress. 

 

Results

The Company sold substantially all of its operating assets to a portfolio company of a private equity firm through an out-of-court proceeding known as an Assignment for the Benefit of Creditors ("ABC").

Additionally, Fort Dearborn’s testimony before the U.S. Bankruptcy Court resulted in the dismissal of a petition from the Company’s creditors to convert the ABC to an involuntary bankruptcy.  Avoiding bankruptcy preserved the transaction and saved over 150 jobs.