Harrison Piping Supply

Situation

Harrison Piping Supply, Inc. (“Harrison” or the “Company”) operates as a distributor of industrial pipe, valves and fittings.

Located in Livonia, Michigan, and founded in 1959, the Company began experiencing financial difficulty as a result of a soft economic environment and a shrinking market for its products.

Compounding the financial challenges facing Harrison, there were significant internal relationships dynamics resulting in a lack of management stability.

Solution

Amherst was selected to act as Chief Restructuring Officer (“CRO”) and initially tasked with cutting costs and restoring profitability.

Amherst led the process of implementing a new sales program and renegotiating contracts with vendors.

Ultimately, despite improving financial performance, Harrison’s senior lender initiated a review process resulting in a revised mandate for Amherst to pursue a sale process for the business.

Results

Amherst quickly identified and approached a select group of prospective buyers with operations who were highly strategic to Harrison.

A competitive and deadline-driven sale process led to the successful sale of the Company.

Proceeds from the sale resulted in the payoff of both secured and unsecured obligations, and provided a modest return to the shareholders.