The Company

Diverse Label Printing LLC

Diverse Label Printing provides label products and support to premier food manufacturers including Frito-Lay, Kroger Foods and a number of other well-known customers.

The Challenge

The owner found himself in a racketeering law suit connected to another company that he owned. In an effort to protect Diverse Label Printing, the company filed for Chapter 11 protection. Sales immediately dropped from over $40mm to less than $25mm and the value of the business declined rapidly.

The Process

Equity Partners was engaged by DLP to sell the business and was quickly court approved to do so. Within 60 days of court approval, Equity Partners attracted 85 buyers to sign confidentiality agreements and review the information on DLP.

The Solution

With EP generating significant interest in the company, a final auction of going concern bidders was conducted. Bidding by four different going concern buyers resulted in Register Tapes Unlimited, Inc. (RTUI) making the highest and best offer. Nearly all employees were retained, and the plant continues to operate.