The Company

Hooven-Dayton Corp.

Ohio based, minority owned, narrow web converter and specialty printer offering digital and flexographic label printing, coupons and flexible packaging.

The Challenge

The Company was profitable until one of its larger customers went to pre-printed wraps and in-mold labeling, and at the same time, demanded and received aggressive price concessions on the balance of their business. The combined effect significantly impacted top line revenue, resulting in net losses. Due to the minority owned status of the business, there were significant issues associated with the transfer of the company’s most profitable supply agreements.

The Process

Equity Partners conducted an exhaustive marketing process that resulted in 62 groups proceeding to conduct due diligence with 12 groups visiting the facility and meeting with the management team.

The Solution

Ultimately, a UCC foreclosure sale was noticed by the secured creditor. Five groups submitted qualified offers and an auction was conducted. After numerous rounds of bidding on various bid lot combinations, the selling price increased to an amount acceptable to the secured creditor. The Branford Group submitting the highest offer.