DEAL SIZE
$20,000,000
Corbitt Manufacturing Co.
COMPANY
CORBITT Manufacturing Company was a provider of contract manufacturing services.
OVERVIEW
- Borrower had $10.3 million of senior debt in default
- Borrower had been in a forbearance for four years and placed in the bank workout group in 2004
- Senior lender petitioned the state court (with the borrower’s consent) to place business into a receivership
ACM VALUE ADD
- Receiver hired ACM to assume CRO, COO, and CFO roles in the company
- ACM professionals quickly streamlined direct costs, rationalized SKUs and improved operating margins
- Worked with Big Box retailers to grow and service existing accounts
- Positioned the company for a sale within 90 days of engagement
- Reduced labor costs by $1 million
- Increased sales by 100% to Menards
- Obtained firewood award from The Home Depot
- The above results allowed ACM professionals to lead a competitive sale process
- The company was sold in June 2012 for $5 million or an implied multiple of 5x adjusted EBITDA
