Automotive Plastic Injection Molder. $170 million in annual revenues. $40 million debt. Tier 1 supplier to GM. Tier 2 supplier to International Automotive Components. Plants in Salem and Mason, OH and a technology center in Troy, MI.
- The Company acquired approximately $40 million in transfer business when other automotive suppliers failed, but launching the new business in a troubled industry taxed its cash flow.
- The financial distress in the North American automotive industry caused raw material vendors to change their payment plans.
- Blackhawk and other suppliers no longer granted customers 30-to 45-day payment terms, and required advance cash payment in some cases.
- Bleeding approximately $500,000 per month, Blackhawk filed for Chapter 11 bankruptcy.
- MorrisAnderson, initially hired to oversee cash management, was appointed CRO and Financial Adviser to the debtor during the bankruptcy and resultant 363 sale.
- Four months later, with the assistance of an investment banker and the guidance of MorrisAnderson, Blackhawk was sold to a multi-billion-dollar, Tier 1 Canadian automotive supplier.
- The Company remained an active presence in a small town in Ohio and a viable competitor in the automotive industry.
- 800 jobs were saved.
- The new owner consolidated some manufacturing facilities and now has a $100 million company with a run-rate EBITDA of about 12%.
- The Company’s senior debt will be repaid in its entirety.