Rotonics

Situation

Rotonics Manufacturing (“Rotonics” or the “Company”), headquartered in Commerce City, Colorado, is one of the largest rotational plastic molding companies in the United States and produces various plastic articles for a broad range of industries and applications. Rotonics was formed through a series of acquisitions by a private equity sponsor that ultimately consolidated nine manufacturing facilities to five.

The Company determined that it could no longer support the substantial debt structure that dated back to the original buyout transaction.

In order to gain liquidity for its creditors, the Company entered into a Trust Agreement and Assignment for the Benefit of Creditors under Illinois law, thereby assigning its assets to the Rotonics Trust for subsequent disposition.

Solution

Amherst Partners (“Amherst”) was engaged by the Trustee and the Company’s senior lenders to sell Rotonics in a highly expedited sale process.

Results

Leveraging the firm’s deep knowledge of the plastic rotational molding industry and its robust network of relationships, Amherst successfully marketed Rotonics to a broad collection of potential buyers, generating numerous Expressions of Interest.

Snyder Industries, Inc., a division of Tank Holding Company (owned by Olympus Partners) and a leading manufacturer of polyethylene and steel material handling products, acquired the Rotonics facilities located in Bensenville, Illinois, and Commerce City, Colorado, as well as the marketing and design operations in Indianapolis, Indiana.

American Custom Rotomolding, a sister company of Acrylon Plastics Inc., acquired the Rotonics facility located in Maple Plain, Minnesota. Acrylon Plastics Inc. operates three custom rotational molding plants in Canada, as well as two plastics extrusion plants.

Amherst led the sale of all of Rotonics’ assets through a UCC Article 9 sale process which closed less than 45 days from Amherst being engaged. While many of Rotonics’ creditors doubted the realized value of the sale of assets would exceed liquidation value, Amherst achieved proceeds of approximately double liquidation through the sale process.