Candy Manufacturer

Company Overview

The Company is a $150 million branded candy manufacturer and distributor of food products under its own brand name and is also a contract manufacturer for several major US food companies.


Engagement Overview
•  Although the Company had historically been consistently profitable, a decrease in contract manufacturing volume, coupled with significant investment in a new plant, left the company in an overadvance position with its multi-bank lending group.
•  Fort Dearborn was engaged to work with management to create the first comprehensive business plan in Company history and assist in refinancing its debt. 
•  Strategic, tactical and financial in nature, the business plan was used not only as an action plan within the Company, but also to tell the Company’s story during refinancing efforts.
•  The business plan process highlighted the need for well-managed expansion, balancing strategic goals for the future with the financial realities of a soft current business climate. 
•  While management had already begun cost containment efforts, additional expense reduction was undertaken focusing on inefficient spending in freight, storage and various other operating expenses.
•  Interaction between FDP and management fostered financial discipline and accountability within this large family-owned business, particularly in the areas of accounts receivable, overall cash management, and the timing and performance expectations of future capital investments.
•  Planning discussions also highlighted the need for management changes, driving senior management to make difficult personnel decisions that had been repeatedly delayed.
•  External reporting was enhanced resulting in lenders receiving meaningful financial statements and analysis for the first time.
Results

Based on a solid story and enhanced performance, The Company’s debt was successfully restructured to meet current and long-term needs of the business.
   

Fort Dearborn secured interest from several lenders resulted in multiple proposals and competitive pricing and deal structure for the Company.