Lincoln International Represents Freedom Plastics, Inc. in a Sale Pursuant to a Court-Supervised Receivership Process
CHICAGO, March 26, 2009 – Lincoln International LLC (through its wholly-owned affiliate Lincoln Partners Advisors LLC), a global mid-market investment bank, today announced the sale of Freedom Plastics, Inc. (“Freedom Plastics” or the “Company”). Substantially all of the assets that comprise Freedom Plastics were sold to four different strategic acquirers for cash consideration and the post-closing collection of accounts receivable and sale of inventory. Lincoln International acted as the investment banking advisor to Freedom Plastics on this transaction with Silverman Consulting acting as a financial advisor to the Company.
On February 2, 2009, Freedom Plastics commenced a court-supervised receivership sale process in Wisconsin and the sale of the Company was completed through an auction held on March 16, 2009 in Milwaukee. The sale process was completed following an assignment for benefit of creditors in accordance with Section 128 of the Wisconsin Statutes and has been approved by the Circuit Court for Rock County in Wisconsin. The sale proceeds will be used to pay down debt.
Headquartered in Janesville, Wisconsin, Freedom Plastics is a manufacturer of Poly Vinyl Chloride (“PVC”) pipe and fittings for the water, wastewater, plumbing, irrigation and industrial markets. Since its founding in 1976, the Company has developed an extensive product line of both PVC pipe and fittings. Freedom operates PVC pipe extrusion lines in both Janesville, Wisconsin and Fort Pierce, Florida as well as fittings fabrication facilities in Janesville and Preston, Idaho. The Company’s pipe manufacturing assets in Janesville were acquired by North American Pipe Corporation, a unit of Westlake Chemical Corporation, while Harco Fittings, Inc. acquired the fittings fabrication assets in Janesville. The Fort Pierce manufacturing assets were acquired by Silver-Line Plastics Corporation and the equipment in the Company’s Preston facility was acquired by NACO Industries.
Lincoln International worked closely with Freedom Plastics to craft a comprehensive marketing strategy which involved contacting more than 125 potential acquirers, coordinating the due diligence process, selecting a stalking horse bidder, assisting with the bid procedures and negotiating four separate purchase agreements. The sale was completed in an expedited timeframe, with the four transactions closing approximately 60 days after Freedom Plastics commenced the court-supervised proceeding.
“Lincoln’s intimate knowledge of sale transactions in an insolvency process combined with its extensive experience in working with companies in the building products industry proved invaluable,” said Steve Scaccia, President, Freedom Plastics. “They quickly created a highly competitive, disciplined sale process that produced a positive outcome in the best interests of everyone connected with the Company, including its employees, customers and creditors.”
This transaction represents the 14th completed assignment by Lincoln’s Building and Infrastructure Group since January 2008 and Freedom Plastics is also the fourth company that Lincoln International has advised on an insolvency-related transaction since January 2008.
About Lincoln International
Lincoln International specializes in merger and acquisition services, debt advisory services, UK pension advisory services and providing fairness opinions and valuations for leading organizations involved in mid-market transactions. With offices in Chicago, Frankfurt, London, Los Angeles, Madrid, New York, Paris, Tokyo and Vienna, and strategic partnerships with China Everbright in China and ICICI Securities, Inc. in India, Lincoln International has strong local knowledge and contacts in the key global economies. The organization provides clients with senior-level attention, in-depth industry expertise and integrated resources. By being focused and independent, Lincoln International serves its clients without conflicts of interest. More information about Lincoln International can be obtained at www.lincolninternational.com
| back |
