Mattison Technologies, Inc.
A Rockford, IL based, 100 year old, family-owned manufacturer of woodworking and large metal grinding machinery. They were forced to file Chapter 11 after losing a large product liability suit.
Low cost Japanese competition made domestic production of new grinders a money-losing proposition and the real property was an environmental liability. The Unsecured Creditors Committee supported our process, based on their hope to achieve a “best case scenario ” transaction of $4.5 million, versus a likely liquidation of less than $3 million.
Equity Partners was retained and generated offers within five weeks in the $6 million range.
Equity Partners believed that much of the value of the business was in the Mattison name and product drawings because the repair and parts business for the thousands of Mattison machines out in the field could be extremely lucrative. At the court hearing, bidding went up to $8 million and two transactions were confirmed: a sale of the environmentally challenged property to one buyer, and a transaction for the rest of the operation to publicly-traded DeVleig Bullard, who would no longer build new Mattison grinders, but who would do repairs, rebuilds, and provide replacement parts for the machines in the field.