Multi-national Manufacturer

Client

A multi-national manufacturer of copper conductors insulated with plastic or other polymeric compounds and is primarily used in the automotive and appliance end user markets. The Company has domestic and international facilities with sales in excess of $200 million.

Challenge

The Company's insulated wire operating results are adversely impacted by industry wide overcapacity and increased material costs that, with the exception of copper price increases, can not be passed through to customers under most customer contracts. The Company hired an Investment Banking Firm to consider strategic alternatives for the insulated wire operations. As part of that process, the Investment Banking Firm solicited expressions of interest for the acquisition of the insulated wire operations from third parties, but no acceptable proposals were received. During this period the insulated wire operations’ Vice President of Finance resigned and the President’s involvement in the day to day operations of the business was being phased out.

Solution

Bridge was hired to work with the existing President to evaluate the insulated wire operation’s operating and financial condition. Bride assisted in the evaluation and development of other alternatives, which included rationalization of the insulated wire operation’s capacity, downsizing, transferring certain facilities to the Company’s other division, shutting down unprofitable facilities, the sale of certain facilities, a wind down of some or all of the division, a combination of the above, designed to maximize the Company’s return on the insulated wire operation’s assets. A Bridge professional was hired to work with the existing President prior to his departure and another Bride professional was hired as the division’s acting Director of Finance.

Results

Bridge successfully assisted with a sale of the insulated wire operation’s Foreign and Domestic assets, which resulted in a significant return on the division’s assets and was also involved with managing and monitoring Domestic and International operations during the wind up of its business affairs.