The Company

EuroPlast, Ltd.

A Wisconsin-based family owned and operated plastic injection molding and tooling company.

The Challenge

EuroPlast had established an excellent reputation for tight tolerance, high quality tooling and molding for over 30 years. In the early 2000’s the business climate changed and engineering became less important as price became the main decision driver. As more work was shipped to Asia, volume and profitably took a huge hit. The Company was forced to file Chapter 11 and emerged under a plan of reorganization. Unfortunately within 6 months the plan proved untenable after the loss of a major customer.

The Process

With operations scheduled to shut down in a few weeks, the lender was pushing for a liquidation. The turnaround professional that had been put in as part of the reorganization plan contacted Equity Partners to see if a going concern sale could be completed.

The Solution

Equity Partners was quickly able to generate a stalking horse offer in excess of any liquidation estimates which gave the lender enough assurance to allow operations to continue long enough to solicit additional bidders. Equity Partners obtained offers from 4 other groups and conducted an auction among them and the stalking horse. After active bidding and an increase of 42% to their initial offer, the stalking horse was deemed the winner. Closing occurred shortly afterwards and provided employment for ownership, allowed operations to continue, and provided recovery far in excess of what the lender had anticipated.