Hooven-Dayton Corp. – This 100% minority-owned, narrow web converter and specialty printer had historically been profitable until one of its larger customers moved a significant portion of its business elsewhere and demanded aggressive price concessions on the balance of its business. The combined effect significantly impacted top-line revenue, resulting in net losses, and the lender was no longer willing to fund the company.
SC&H Capital conducted an exhaustive marketing process that resulted in 62 groups completing due diligence with 12 of those groups visiting the facility and meeting with the management team. Ultimately, a UCC foreclosure sale was noticed by the secured creditor and SC&H conducted an auction among five groups. After numerous rounds of bidding on various bid lot combinations, the secured creditor felt value had been maximized and accepted the highest and best offer.