Shop-Vac Corporation (“Shop-Vac” or the “Company”) is a multinational manufacturer and distributor of branded wet/dry vacuums and accessories for consumer and commercial applications.
After decades of financial success, Shop-Vac faced a series of liquidity challenges while executing planned profit improvement initiatives. In 2019 and into 2020, the Company built and ramped up a new manufacturing operation in Vietnam to mitigate tariff exposure and curtailed redundancies by consolidating its U.S. manufacturing operation. While completing its reorganization, Shop-Vac’s supply chain became destabilized by the effects of COVID-19. Unable to produce finished goods, the Company’s liquidity tightened, inhibiting its ability to realize its restructuring objectives.
SSG was retained to explore strategic alternatives to allow stakeholders to maximize value. In response, SSG conducted a comprehensive dual-track refinancing and sale processes that produced multiple bids. GreatStar Tools successfully negotiated a deal to acquire substantially all the U.S. assets of the business and restart operations. SSG’s special situations expertise and manufacturing industry experience enabled Shop-Vac to complete a complex transaction that maximized value for all stakeholders.