Capital Mercury Apparel

Background and Situation:

• ESBA met this $95 million revenue producer of men’s apparel as the subject of a due diligence review on behalf of a prospective new lender. When the loan was turned down, the Company faced some dire restructuring alternatives, including a Chapter 11 filing.
• ESBA assessment suggested a sale of the business, during which time it was necessary to conserve cash and continue operations long enough to permit a sale.

Results and Accomplishments:

• ESBA stabilized the business, reassured the lender for the necessary time period, and facilitated a sale of the business for a price exceeding liquidation value.
• The result was an expedient sale, a full recovery by the lender, some equity value for the shareholders, no exercise of personal guarantees, and the preservation of 280 jobs in a rural area of North Carolina.

Proliance International, Inc.

Background and Situation:

• Company was a $750 million manufacturer of metal fabricated parts for the auto and truck markets having both U.S. and European businesses. In addition to being in an industry already hard-hit by the economic downturn, the Company’s facilities were hit with a destructive tornado.
• As a result of the loss of a key facility and significant inventory, its customer “fill rates” were impaired. This resulted in the loss of 40% of its business and the necessity to file Chapter 11. ESBA was retained as financial advisor to the creditors committee.

Results and Accomplishments:

• The troubled operating units of the debtor were both sold to separate buyers. In one instance, despite the existence of a challenging environmental condition, ESBA provided the debtor with over 100 additional strategic and financial buyers, thereby enhancing the asset sale process.
• The result was the best possible result for our client, the creditors, the continuation of a customer for many suppliers, and the preservation of 1,000+ jobs in a hard hit sector throughout the world.

DVL, Inc.

Background and Situation:

• This publicly-traded commercial finance company wanted to “go private,” in part due to an unusual mix of businesses and the burden of public reporting requirements.
• ESBA was retained to provide a fairness opinion to the Board of Directors and advise in the transaction.

Results and Accomplishments:

• With ESBA’s advisory assistance, DVL was able to complete successfully the going-private transaction in a way that provided a premium to minority shareholders.
• The Company also benefitted from its conversion to private ownership status through an ability to make optimal decisions involving an eclectic mix of assets with complex tax attributes and unusual cash flow patterns.

DyStar LP (Portfolio Company of Platinum Equity)

Background and Situation:

• DyStar, with over $100 million revenues, was the former U.S. operation of a larger Platinum Equity portfolio company which had previously been sold; the U.S. business was not sold for financial reporting reasons.
• While the business was performing very profitably, it was too small to be a “platform” investment for Platinum, who selected ESBA to advise in a sale of the business due to our prior experience in selling a similar business, CPC Chemical.

Results and Accomplishments:

• Working with Management, ESBA positioned the business for a comprehensive approach to the acquisition marketplace, including preparing a persuasive information memorandum and substantial buyers list.
• We then advised Platinum in negotiating and closing a sale transaction with Kiri Holding Singapore Pvt. Ltd. for a price that provided Platinum with an attractive return on its investment.

Schuylkill Products, Inc.

Background and Situation:

• Schuylkill was a $50 million revenue producer of concrete bridge components with an attractive production facility and business system in Pennsylvania.
• Despite a favorable market environment, Schuylkill was forced to sell the business due to the impact of the business practices of certain managers. Having previously advised the Company, ESBA was retained as exclusive M & A advisor.

Results and Accomplishments:

• Due to its circumstances, Schuylkill was not able to accept new customer orders; hence, it was producing only marginal profits on revenues derived exclusively from its backlog, a depleting asset.
• Nonetheless, ESBA was able to complete a sale of the business under terms that were advantageous of both buyer and seller.