Precision Swiss Products, Inc. (“PSP” or the ‘Company”) is a leader in innovative, precision manufacturing solutions for customers across a variety of industries including medical devices, aerospace & defense, and semiconductors producing extremely tight tolerance components within accelerated time frames.
After realizing tremendous year-over-year growth and reaching capacity in its California-based facility in 2020, the Company executed its strategic plan to expand its footprint with a new facility in North Carolina. Unfortunately, due to delays in the build-out of this facility, a downturn in the semiconductor industry, and delays in FDA approvals on several medical devices PSP was slated to provide components for, the Company experienced a material revenue decline in 2023 and had to forego numerous new revenue opportunities from existing and new customers due to insufficient working capital.
SC&H was brought in to advise on how best to maximize value and capitalize on PSP’s established Fortune 500 customers, experienced workforce, and arsenal of equipment.
SC&H immediately arranged for DIP financing with the Company’s primary lender to provide the liquidity needed to continue to operate through a Chapter 11 bankruptcy proceeding. A stalking horse bid was negotiated with BTX Precision Company (“BTX”) for the Company’s assets and SC&H proceeded to conduct an extensive marketing process to inform the market of the stalking horse bid, and that a court-approved auction timeline was in place.
This extensive marketing effort resulted in more than 60 groups executing confidentiality agreements and analyzing the opportunity. Prospects included a mix of strategic, financial, and machinery and equipment buyers. GCM submitted a qualified bid by the bid deadline and a competitive auction was conducted between them and BTX, with GCM being designated as the winning bidder. Prior to the auction, SC&H and the Debtor’s counsel negotiated pay-off agreements with the Company’s primary lender and over 20 equipment lenders who responded to the auction notice.
