Martin/F. Weber Co.

Situation

The Martin/F.Weber Company is a premier manufacturer of artists’ paints and supplies; its affiliate, Martin Universal Design, is a leading importer and distributor of artists’ supplies selling to retailers in North America and Europe.

After many years of success, the Martin companies were confronted with two extraordinary external shocks resulting in losses, a cash drain, and substantial collateral swing.

The Companies’ bank responded by calling its loans and pressuring the owner to sell one or both operations to resolve the liquidity crisis.

Solution

The Martin companies engaged Amherst Partners to provide advice on strategic alternatives and to assist in implementing the chosen strategy.

Amherst developed a plan to recapitalize the Companies to support continued operation and preserve future value.

The plan included intense cash flow management and communication with the incumbent lender throughout the recapitalization process.

Results

Amherst attracted a new credit facility with enhanced availability on working assets along with previously unavailable credit drawn from plant assets.

The resulting credit structure provided necessary funding for operations without giving up equity.

The companies’ incumbent bank made a full recovery of its loans and the Martin companies’ owner retained full ownership of two thriving operations.