client_transactions

SSG Client Transactions

Title

Rehrig International, Inc.
Client Profile

Client Profile

Rehrig International, Inc. (“Rehrig” or the “Company”) is among the world’s largest manufacturers of plastic shopping carts. Founded in 1975, Rehrig developed the world's first plastic shopping cart and has continued to develop and patent a wide variety of other injection-molded products such as plastic handbaskets, dollies, material handling equipment and point-of-sale display fixtures. The Company manufactures out of a fully integrated, state-of-the-art, 317,000 square foot facility located in Chesterfield County, Virginia, approximately seven miles south of Richmond.
Situation

Situation

Despite the Company’s strong presence within the shopping cart industry, Rehrig faced several challenges that contributed to overall financial difficulties. Some of the issues faced included (i) an unprecedented increase in raw material prices of resin (an oil based product) and steel, which increased year over year by 35% and 56%, respectively and the implementation of internet-based reverse auctions, leading to an overall reduction in per unit prices and the loss of a major customer.
Solution

Solution

SSG was retained by Rehrig to assist the Company exploring strategic alternatives. Rehrig considered a variety of transactions, but ultimately decided on a restructuring and recapitalization of its balance sheet with the existing mezzanine investors. The transaction closed in May 2005. The SSG investment bankers who provided financial advisory services to Rehrig International were Matthew P. Karlson (Managing Director) and T.J. Haas (Vice President).
May 2005
$11,000,000
Revolving Credit Facility
$4,800,000
Senior Secured Term Loan
$8,400,000
Term Loan B
The undersigned acted as Investment Banker to
Rehrig International, Inc. on this transaction.

Call to learn more

Call to learn more

If you would like to learn more about this transaction, or any of our transactions, call us today.

Philadelphia
(610) 940-1094

Contact by E-mail »

New York
(212) 782-3755

Contact by E-mail »