Design Molded Plastics: Custom Plastic Injection Molder
Design Molded Plastics is a custom injection molder serving customers in the appliance, consumer goods, industrial and automotive industries and operates 35 plastic injection molding presses from 88 tons up to 950 tons, including two shot molding capabilities, vertical molding, In-mold labeling and sub-assembly capabilities in 150,000 square feet of production and distribution.
Despite the financial and operational challenges facing the business, the management team at Big Shoulders Capital saw an opportunity to help save this business, support its more than 50 employees and give it the best chance to thrive again. In addition to operational improvements, management restructuring, and overhead alignment, the growth strategy includes a focus on external sales, improved existing customer relationship management and bolt-on acquisitions of other injection molding companies.
MOD Interiors: An addition to our Savannah platform
MOD Interiors is a high-end provider of architectural millwork, north of Detroit. The owner was looking to de-risk, but was still committed to business. So Big Shoulders partnered with Iroquois Industrial to acquire the company, and have it work synergistically with Savannah Industrial Solutions. MOD continues to operate independently, with no loss of jobs.
By bringing MOD Interiors and Savannah into partnership, each firm can bid on and execute larger portions of projects than they would be able to individually. MOD will be able to utilize the metalwork, stonework and high-volume woodworking capabilities of Savannah, and Savannah will be able to serve its customers with MOD’s high-end millworking capabilities, for which they won the Architectural Woodwork Institute's Standard of Excellence.
The bank saw a liquidation, we saw an investment
After revenues declined by 30% over two years and EBIDTA turned negative, the lender for Benda Conveyor Solutions cut funding and initiated foreclosure in November 2021. By January 2022, most employees had been laid off, payrolls were missed, and the company was days away from permanent closure.
The bank brought it to BSC as a liquidation deal, but we saw value, quickly diligenced and ultimately purchased Benda as a going concern a month later, along with our partner, Iroquois Industrial Group.
The lender enjoyed a full recovery, 23 jobs were saved, and we plan to expand into other markets and leverage synergies with our other portfolio companies.
We invested in a manufacturing company, and its employees.
DRS Industries, an Ohio-based tool manufacturer and custom injection molding company had large clients and a sterling reputation. Yet its passive investors were unwilling to fund operations and put the company into receivership. We stepped in, forming a new entity to purchase and operate DRS. We not only saved 35 jobs, but now, with a new infusion of capital, we are preparing to expand production.
A company is saved, along with more than 100 jobs.
Savannah Industrial Solutions manufactures metal and wood products for the restaurant, food service, healthcare, telecom and municipal markets. A private equity group purchased the company, but the resulting debt burden was more than operations could support. At BSC, we saw great potential in their business and the skills and talent of its employees. So we formed a joint venture to purchase the company’s assets, confident that if we invested in Savannah’s people, we could create real value for its customers.
In 2021, we invested $1MM in a new semi-automated, five-stage powder-coat paint line.
We held the key to saving this metal locker manufacturer.
A leading manufacturer of top-quality metal lockers and industrial storage products in Illinois was forced to declare bankruptcy despite $75M in annual revenues. We recognized their value, purchased the company out of bankruptcy, and brought on an operating partner to steer it in a new, better direction. We exited almost exactly one year later with their profits—and future—stabilized.
We put a family-owned machine shop on a solid foundation.
A family-owned North Carolina machine shop made castings for agricultural equipment. Business was good until an increase in raw materials took a chunk out of their profits, and another company undercut their price. The company had a plan to rebound but needed money to get there, so took out an ill-advised high interest loan. This only made things worse. Fortunately, BSC came in and refinanced the existing loans, dramatically reducing the company’s monthly payment burden.
We gave this oilfield trucking company a big lift.
The owners of an oilfield trucking business just north of Oklahoma City were retiring. They found a potential buyer, but the current owners’ disorganized accounting practices scared away traditional lenders. Fortunately, the interested buyers came to BSC. We relied on our expertise to appraise the company’s equipment and provided a $1.5M loan. We also brought in a second lender to provide accounts receivable financing, helping the buyers keep the entire staff of 70+ employees and continue operations uninterrupted.
An end-of-year rush and a happy holiday from the sale of a wood pellet plant.
A manufacturer of wood pellets sits on a 22-acre site in Missouri. In December, they decided they needed to sell their facility before the end of the year. We quickly found a South American user for the machinery and equipment and worked with the community to sell the real estate to a local operator interested in restarting production. The company continued operation, saving numerous jobs, and we were able to close the transaction before Christmas—giving everyone a happy holiday season.
We helped a global graphite product manufacturer focus on their core business.
A manufacturer of graphite products had a division that was distracting them from their core business, and they needed a way out. PPL Group, BSC and our partners purchased the entire division, comprised of five facilities in the U.S. and Italy. This included approximately 2 million sq. ft. of manufacturing space, ISO molding, extrusion equipment, inventory and real estate. We funded multiple buyers who purchased four of the plants. After holding an auction for the surplus equipment in the fifth plant, we financed another buyer to step into the right-sized operation and restart the facility.
A pharma campus needed a buyer, and we were just what the doctor ordered.
A generics pharmaceutical campus which included liquid manufacturing filling capabilities and a distribution warehouse was up for sale. They struggled to find a strategic buyer, and after two years on the market they needed some relief. PPL Group and BSC provided it. We purchased the entire 110-acre campus, including three facilities totaling more than 800,000 sq. ft. We then conducted a series of auctions for select equipment and Big Shoulders Capital funded a contract manufacturer to lease the liquids building and equipment.
Things are looking up for this broadcast tower construction company.
Bankruptcy doesn’t have to be the end—it can also be a new beginning. A broadcasting tower construction company filed for Chapter 11 and faced a mountain of IRS debt. We provided a $1.5MM loan so the debtor could refinance their existing debt, pay down the IRS, and grow the business. As a result, the company is facing a promising future.
We gave an organic food packaging company a fresh start.
A Pennsylvania co-packer, producer and transporter of organic food filed for bankruptcy. They were looking to reorganize and refinance existing debt and needed operating capital to complete current orders and generate more business. Our $1.2MM loan did just that, and helped put them back on solid footing to re-grow their business.
We helped a trucking company in Chapter 11 keep on rolling.
A Texas-based trucking company serving the oilfield industry filed for Chapter 11. Their senior secured lender was a local bank looking for a way out. With our familiarity and knowledge of the industry we purchased the bank’s $2.5MM position. The bank recouped its loan and exited the bankruptcy, and we had a new, promising addition loaded to our portfolio.
We put the pedal to the metal in turning around this aluminum extrusion company.
An aluminum products producer located in Central Florida and with annual revenues of $100M, was facing a time of transition—its private equity owner was fatigued, leaving the company in limbo. Working with existing leadership, Big Shoulders Capital and our operating partner stepped in to purchase the company, secured by its considerable collateral, including real estate. At the time, the company’s EBITDA was negative. We recruited an industry leader to orchestrate a turnaround, and the company remains a profitable part of our portfolio today.
We unlocked the profit potential of this fastener manufacturer.
A private equity firm bought a Wisconsin-located manufacturer of fasteners and rivets serving the automotive industry. Unfortunately, the PE group began facing challenges, so BSC stepped in and purchased the company through a bank process. We then convinced the former management team, which had since left the company, to return. After rightsizing the business to ensure sustainability, BSC was approached by an international strategic buyer who is operating the business today.
We stepped up to the plate to rescue this steel plate fabrication company.
A firm that fabricated steel plates for the construction, agricultural, mini-equipment and power generation industries had revenues of $40M per year. But a judgment after years of costly litigation sent them into bankruptcy. BSC was the winning bidder at their bankruptcy auction, and formed a new company: LB Metals, LLC. After successfully stabilizing the company, we sold our interest to a strategic buyer who is running the company today.
Saving this metal fabrication business took more than a turnkey solution.
A metal fabrication company in Ohio, with annual revenues of $8M, was shutting their doors after defaulting on a debt. Big Shoulders Capital purchased the debt and helped ownership retain their company. Today, we continue to lease the equipment back to them, and are providing a revolver loan for their working capital needs.
A Demolition Company With an Investment Opportunity
Big Shoulders Capital provided acquisition financing to a demolition company that wanted to take advantage of an investment opportunity but did not have time to solicit traditional financing. We quickly became familiar with and accepted the terms, and provided funding so the company could complete their transaction.
An Equipment Rental Company Facing Bankruptcy
Big Shoulders Capital provided a loan to an equipment rental company that had recently filed for bankruptcy. Because of the bankruptcy, the company could not find any lenders to provide working capital and fund equipment purchases. We recognized the opportunity in this business and were able to provide a loan when no other lender could.
A Large Manufacturer Facing Liquidation
Big Shoulders Capital worked with a large manufacturer to take out their very fatigued lender. By providing this funding solution, the company avoided liquidation, retained their employees, and ultimately refinanced with another lender. The lender was able to quickly appreciate a great recovery and avoid further distractions and expenses. We were uniquely positioned to provide this lending solution for the manufacturer and bank when other companies could not.
An Oil and Gas Water Hauling Company Needed Time to Wind Down
An oil and gas water hauling company had more than $6M in assets, but was highly leveraged with multiple lenders. Big Shoulders Capital provided a term sheet and worked through an asset purchase agreement; extending the company’s viability. Meanwhile our sister company, PPL, organized loan settlements and held three separate auctions to maximize the value of the company’s assets.
After a Landscaping Contractor Dug Itself into a Hole, We Helped Them Climb Out
An Illinois-based landscaping contractor was on the verge of foreclosure from its secured lender. They desperately needed debt relief. BSC bought the loan, giving the business the time they needed to craft a succession plan and map a more profitable future. Today, the business thrives; BSC recently provided funding to the second generation of owners to continue and expand operations.
A Wastewater Treatment Company Needed Liquidity to Purchase Equipment, Fast.
A multiple-location wastewater treatment company needed funding to purchase new equipment. We worked with a private equity company to quickly provide the cash infusion they needed. Today, they not only have new equipment, but that equipment is running a proprietary treatment process that is breaking new ground in the industry.
A Full Service Highway Contractor in Need of a Loan
When companies are stuck in neutral, BSC helps push them forward. When a full-service highway contractor needed cash, we approved a $1 million loan, giving them the working capital to get them moving again.
A Wastewater Treatment Company in Need of a Quick Cash Infusion
When companies are sinking, BSC helps them stay afloat. A wastewater treatment company with two locations in Ohio needed a quick cash infusion to purchase new equipment. We moved fast, and their equipment is now installed and running.
A Landscape Contractor Facing Foreclosure
When a business is stuck in the mud, lenders turn to BSC. The secured lender held a note on the real and personal property of the company. They were ready to foreclose when Big Shoulders Capital stepped in and purchased the note. We are now working on a succession plan for the owner’s son to buy back the assets and control the company.
A Steel Fabrication Business in Need of a Loan
After a drop in demand from its energy clients and a change of ownership at its bank, a steel fabrication business suddenly found itself struggling. Big Shoulders Capital quickly provided a $3MM term loan alongside the existing lender’s mortgage and line of credit, providing a working capital injection to help the business get back on its feet. The company soon stabilized and was able to pay back the entire loan within just 12 months.
A New York Woodworking Manufacturer In Need of Refinancing
Big Shoulders Capital closed on a refinancing solution to support over 200 jobs at a New York woodworking manufacturer that has been an important employer in the town for over 40 years. Despite the company having a challenging 2017, BSC was able to move very quickly to provide a Machinery and Equipment term Loan solution that helped the owner generate liquidity to fill current orders and allowed the existing bank to reduce their exposure. The banker was pleased to retain the client relationship and satisfy internal banking requirements. The company is thrilled to have additional working capital to keep up with customer demand.
We helped an aerospace company soar to greater heights.
After years of growth, a SoCal-based aerospace manufacturer landed a 20-year contract with a major client. Unfortunately, they lacked the working capital to fulfill the contract and an uncooperative lender was blocking new financing efforts. We stepped in and refinanced their loans, replaced the existing lender, and provided a term loan to provide the liquidity they needed to reach higher and achieve greater success.
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