Branded Personal Care Products Manufacturer

Company Overview



Branded Personal Care Products Manufacturer - The Company is a Branded Personal Care Products Manufacturer with $100 million in sales that was acquired from a Fortune 500 company in a leveraged buy-out transaction. 

Engagement Overview

Working with management , Fort Dearborn developed plans to:

•  Strengthen brand name recognition across all distribution channels through new sales programs and       new product offerings earmarked for specific customers based on focused market research. 


•  Reduce private label manufacturing for certain national retailers, shifting focus to current brands.

•  Introduce a SKU reduction program based on sales, profitability and inventory turns analyses.

•  Increase profitability by reducing costs and improving efficiencies in warehousing and distribution areas:
•  Consolidation of product shipping points
•  Implemented a repackaging strategy
•  Established minimum order quantities to optimize sales
•  Performed analyses and revamped the logistics function which led to significant savings

•  Define formal New Product development justification/hurdle criteria.

•  Implement  pricing and cost reduction initiatives.

•  Ultimately led the initiative to outsource manufacturing as a way to reduce excessive costs due to an antiquated manufacturing facility and union labor legacy issues from previous owner.
Results

Capitalizing on Fort Dearborn’s intimate knowledge of the Company’s operations and its operating plan and financial forecast, Fort Dearborn was able to:


•  Advised the Company on shut down of its plant and outsourcing its                  manufacturing to a contract manufacturer at substantially reduced cost.


•  Negotiate forgiveness of $12 million of subordinated debt out of $21 million of total sub-debt.

•  Advised the Company on an angel investor for $9 million of much needed new capital, and negotiated the transfer of significant real estate collateral from the old sub-debt holder to the new sub-debt holder.