Siena Lending Group – Partnering With Financial Sponsors | Quickly Regaining Lost Revenue After a Fire (Stonebridge Partners Specialty Bakers LLC)

SPONSOR: Stonebridge Partners

CLIENT: Specialty Bakers LLC

Specialty Bakers LLC is a leading provider of high-quality baked goods, distributed primarily to grocery stores and other retailers for sale in their bakery sections. The company, owned by Stonebridge Partners, operated two manufacturing facilities. When a fire destroyed one of them, wiping out a major product line, Stonebridge Partners reached out to Siena to help Specialty Bakers rebound quickly.

Challenge

Specialty sought to quickly replace its lost production capabilities through acquisition, and identified the Bake One company as a key target.

Solution

Siena financed the acquisition by leveraging the assets of both Specialty and Bake One, in conjunction with cash pledged by Specialty.

RESULT

Specialty completed the acquisition, regaining lost sales within months of the fire.

SPONSOR: RFE Investment Partners

CLIENT: PCX Aerostructures, LLC

Siena really came through for us as Bake One equipment and related assets were attractive to a number of large bakery players, necessitating less than a month to close the deal. Siena delivered on what they proposed and in the time frame we needed to get the deal done.”

PCX Aerostructures, LLC is a premier supplier of advanced mechanical systems for leading OEMs in the aerospace industry. The company—owned by RFE Investment Partners—had a strong backlog of orders, primarily for components that Boeing needed to upgrade U.S. military helicopters. When PCX had trouble keeping up with demand, RFE turned to Siena to deliver a working capital solution.

Challenge

PCX needed additional working capital, but the company was constrained by its previous lender, whose financing solution was based primarily on cash flow.

Solution

While most asset-based lenders won’t allow clients to borrow against work-in-progress (WIP), Siena recognized this situation was unique given PCX’s competitive moat as a government-approved supplier. We partnered with another lender to provide a creative financing solution to fund the company’s WIP.

RESULT

PCX used the additional liquidity to convert on its backlog and increase profitability.