Crescent & Sprague Supply Co., Inc. (“C&S” or “the Company”) – SC&H Capital was retained as investment banker to seek financing, or a buyer for this Marietta, OH based, 119 year old, wholesale and industrial distributor of electrical, plumbing, HVAC, and waterworks supplies. The Company’s current asset based lender arrangement was not adequate enough to allow them to fulfill purchase orders on hand, which created significant revenue deterioration and cash flow constraints, forcing them to file for Chapter 11 bankruptcy to give them time to secure a new lender or sell the company. SC&H Capital gained agreement from their lender to continue to finance operations while conducting a comprehensive marketing process, which resulted in a wide range of potential lenders, investors, and buyers conducting due diligence, and an offer to purchase the Company. SC&H Capital continued to negotiate with three different secured lenders and the buyer, improving the offer enough to gain approval from all parties-in-interest obtaining approval by the court. Upon closing, the buyer continued to operate the Company as a going concern and kept a majority of the staff employed. SC&H Capital’s experience in identifying potential buyers and running a proven expedited sales process, along with their extensive bankruptcy experience led to this positive outcome, which was far better than a liquidation of the Company’s assets and laying off over 37 employees.
