The Company

Crescent & Sprague Supply Co., Inc.

Marietta, OH based, 119 year old, wholesale and industrial distributor of electrical, plumbing, HVAC, and waterworks supplies.

The Challenge

The Company’s current asset based lender arrangement was not adequate to 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.

The Process

Equity Partners 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.

The Solution

Equity Partners continued to negotiate with three different secured lenders and the   buyer, improving the offer enough to gain approval from all parties-in-interest and 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 of 37 employed with a recovery to creditors far batter than liquidating the assets.