The Company

SAMES North America, Inc.

This company was a Detroit based assembler and distributor of electrostatic paint spraying devices used in automobile plants in the U.S., operating in Chapter 11 after its parent company filed Chapter 7 and sold its French supplier, Excel Industries.

The Challenge

Sames’ President believed Exel Industries, was the only possible buyer, because Exel would never agree to supply a competitor. There was an offer from a large US competitor, however the purchase price would  only pay the secured debt.

The Process

Equity Partners was retained, really to prove that there were no other viable buyers. Instead, Equity Partners was able to quickly get numerous qualified prospects to visit SAMES and generated four additional offers in 5 weeks, including a $1.5 million offer from Exel.  An  “auction” of going concern bidders was planned for the day of the sale hearing.

The Solution

Competitive bidding led to a $3.7 million transaction with Exel, which paid off all of the debt of the bankruptcy and provided $1 million to shareholders.  The President and other employees were retained by Exel and continue to operate the going concern out of the same locations.