SC&H Capital was engaged by Teknor Apex (“Teknor”), a strategic acquirer, to guide the Company through the process of acquiring the assets of Danimer Scientific (“Danimer”) in a section 363 sale.
Along with its co-investment banker, William Blair, and bankruptcy counsel, Potter Anderson, SC&H Capital guided Teknor through the process of negotiating a stalking horse asset purchase agreement, navigating complex intellectual property and environmental issues, and ultimately being the successful buyer of the business.
Teknor, a global leader in plastic material science solutions, acquired the assets of Danimer after its entry into Chapter 11 Bankruptcy. Danimer was a leading bioplastics company focused on the development and production of biodegradable materials. The strategic move brings together two industry pioneers united by a shared vision for a more sustainable future. Among the assets acquired by Teknor include two facilities with over 200,000 total square feet of world-class laboratories, manufacturing facilities, and testing space and more than 480 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations.
Led by Managing Director, Michael Fixler, SC&H Capital leveraged its expertise in restructuring and bankruptcy transactions with William Blair’s plastics and renewable materials industry knowledge to structure the overall transaction approach, including creating a financial model for Teknor’s executive management team to help value the Danimer business with a number of different input assumptions and drivers. Simultaneously, SC&H Capital and Potter Anderson worked with the Debtors’ legal team and investment bankers to negotiate the asset purchase agreement and appropriate bid protections, especially in light of certain risks that could not be mitigated prior to the bid deadline nor through a section 363 Sale Order.
Ultimately, the Delaware Bankruptcy Court approved Teknor as the stalking horse bidder and, after the Debtors received no “topping bids,” approved the sale of those Danimer assets to Teknor.
About SC&H Capital
SC&H Capital is an investment banking and advisory firm specializing in mergers and acquisitions (M&A), employee stock ownership plans (ESOP), distressed M&A, capital raises, financial restructurings, and business valuations for middle-market companies nationally. SC&H Capital delivers services across numerous industries including technology, healthcare, manufacturing, consumer, business and professional services, and government contracting. We are recognized for delivering relevant market insights and tailored solutions to help owners achieve their true strategic value. To learn more, visit www.schcapital.com.
