Corrugated Box and Supplies Manufacturer

Company Overview


  • The Company is a multi-plant corrugated box manufacturer that has grown into one of the Midwest premier source for packaging and displays. The business provides corrugated products, packaging supplies, graphics and displays, order fulfillment and logistics solutions to their customers.

  • Ownership was pursuing acquisition opportunities to expand its product offerings and its geographic market coverage.  Fort Dearborn advised ownership on two acquisition opportunities.


Engagement Overview
  • The Company operates multiple plants and was looking to expand through acquisition. Fort Dearborn Partners was engaged on two occasions to provide buy-side support and due diligence for  potential acquisitions. 
  • In one acquisition opportunity, Fort Dearborn provided an assessment that highlighted poor operating performance and antiquated equipment and advised management to not extend  an offer Subsequently, the acquisition candidate was sold through a bankruptcy proceeding and eventually went out of business.
  • For another acquisition opportunity, Fort Dearborn advised management not to proceed as the target company did not strategically fit out clients business and  the target’s owners controlled the key customer accounts.  Our assessment was that these sales relationships were not easily transferable and too risky to pay cash up front.
  • We also provided valuation  and deal structure assistance in conjunction  but ultimately advised ownership to pass on offers for the desired acquisition targets.
Results
  • Fort Dearborn conducted financial and operational  due diligence and based on its knowledge and experience within their industry advised management to not pursue further these acquisition opportunities.