News
Fort Dearborn Advisors and Fort Dearborn Partners Represent Amtex Steel in Sale to Chicago Steel & Iron
Chicago, Illinois - November 13, 2009
Amtex Steel, Inc. (Amtex) announced today that it has sold substantially all of its operating assets and real estate to Esmark Steel Group, a subsidiary of Esmark Incorporated. The Company was sold through an Assignment for the Benefit of Creditors. Amtex will be renamed Chicago Steel & Iron.
Amtex is a steel service center that maintains inventories of steel coils, sheets, plates and bars for OEM's and steel fabricators in a variety of industries, along with offering precision shearing, slitting, leveling, cutting, edging and sawing services. Due to the recent economic downturn and significant decreases in steel prices during the fall of 2008, the Company experienced declining revenues and incurred operating losses. Despite cost cutting efforts, the Company was unable to operate within its senior bank line-of-credit facility or to service its debt. As a result, the owners decided to sell the business.
Fort Dearborn played a vital role as Amtex's exclusive financial advisor for this transaction by identifying and screening potential buyers and negotiating the terms of the sale of substantially all of the assets including the Company's real estate. The transaction closed in less than 120 days from the beginning of Fort Dearborn's engagement. Additionally, Fort Dearborn used its profit improvement consulting skills to identify and implement cost savings initiatives that improved the Company's future earnings potential for prospective buyers. Subsequent to closing the transaction, Fort Dearborn assisted in negotiating a favorable settlement on working capital adjustments.
Challenges to completing the transaction included Fort Dearborn maintaining the senior lender's confidence that a sale transaction could be consummated and keeping multiple bidders interested despite the divergence of their goals and objectives, and Amtex's increasing level of financial distress.
Fort Dearborn has the expertise to successfully complete complex transactions like Amtex because we provide a comprehensive suite of consulting and investment banking services designed specifically to serve middle market companies.
About Fort Dearborn Advisors LLC
Fort Dearborn Advisors is a leading middle market investment bank focusing on providing superior, operationally focused investment banking services to companies and their owners. FDA’s clients include corporations, private equity firms and owners of privately-held companies.
Fort Dearborn Partners (“FDP”) is a leading profit improvement and turnaround-consulting firm focused on middle market businesses. Like FDA, FDP’s clients include corporations, private equity firms and owners of privately-held companies. FDP has also completed consulting assignments for many of the nation’s leading lending institutions.
