Hilco Corporate Finance Partners with General Foam Plastics

Problem To Resolve

General Foam Plastics had been in the plastics industry since 1957 specializing in Christmas trees, wreaths, and garlands, in addition to Easter, Halloween, Christmas blow-molded items, and Summer Escapes swimming pool and inflatable lines.

In 2006, the Company acquired Beckett, a recognized leader in the design and manufacture of innovative and reliable pumps for the water gardening, industrial, and OEM markets. General Foam had significant trouble competing on price with Chinese imports.

After several challenging years attempting to compete on cost with overseas manufacturing, the owners of General Foam Plastics had decided to get out of the business. After publicly announcing that it was closing down the business, the Company did not know if it could find value for any of its operations.

Hilco Corporate Finance worked with management to review various strategic alternatives and determined the best course of action was to sell specific profitable product lines, sell Beckett as a going concern, and liquidate the remaining assets.

After 60+ years of flourishing in the plastic industry, the owners of General Foam Plastics came to the realization they no longer could compete on cost/price with foreign imports. The Company publicly announced they were closing their doors. In this unique situation, the CEO approached Hilco Corporate Finance to determine if there was any opportunity to appropriately monetize the business. After a detailed review, it was determined to sell the profitable product lines of General Foam and liquidate the remaining assets. It was also determined to sell the Beckett subsidiary as a going concern, as it was independent from the plastics operations. Hilco Corporate Finance ran parallel processes and was able to generate positive financial outcomes for the owners.

SOLUTION We Delivered

Proposed

Strategic Alternatives

 

Sold

Product Lines

and Assets

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