FlexTek Components, Inc.
FlexTek Components, Inc. (‘FlekTek’ or the ‘Company’) was a leading contract manufacturer of metal enclosures primarily serving the telecommunications, consumer electronics and industrial products industries. SSG was retained to sell the business in order to maximize recovery to the Company’s senior lenders. At the time of SSG’s retention, the Company operated five facilities throughout the U.S. and generated annual revenue in excess of $80 million.
SSG was retained to sell the business in order to maximize recovery to the Company’s senior lenders. The virtual collapse of the telecommunications market during the sales process dramatically reduced the company’s top line as customers, such as Motorola and Cisco, pulled orders to run off their bloated inventories.
SSG quickly facilitated the sale of the Company’s Wesley Terrace facility as a going concern and the liquidation of the Company’s California operation, both of which were bleeding cash, thereby limiting additional capital infusions by the lenders. The divestiture of these two facilities provided SSG with time to sell off the remaining three operations as going concerns and allowed for the maximization of value to the bank group.