Gaspari Nutrition, Inc.
Gaspari Nutrition is a world leading developer and distributor of sports nutrition supplements based in New Jersey.
Sales had dropped from over $80mm to less than $50mm and the value of the business was declining rapidly. The senior lender was exerting pressure on the business which was out of various loan covenants. Key suppliers would not ship product and threatened an involuntary bankruptcy.
The Company, led by world famous bodybuilder, Rich Gaspari, hired Equity Partners just before they were forced into a liquidation. Equity Partners quickly bought some time with the lender and key suppliers, brought in an outside restructuring officer to run the day to day operations, and pursued a solution. Equity Partners’ comprehensive process resulted in a wide range of potential buyers and investors, including multiple international strategic and financial parties.
Equity Partners obtained DIP financing, and an initial offer of $5,000,000. An auction was set up in the bankruptcy court. After more than 50 bids, the business was sold for $10,100,000 to a strategic buyer from Ireland. Rich Gaspari stayed with the company in a management position, with a 30% ownership stake (and the ability to earn more) and the business continued operations.