Zimmerman Sign Company
Zimmerman Sign Company (‘ZSC’ or the ‘Company’) supplies regional and national customers in the petroleum, automotive, fast-food and retail industries with high-quality site identification products and services. ZSC manufactures and sells a variety of signage products that range from hi-rise highway-located site identification signs to twin-pole signs, and channel letters. The Company’s typical manufactured product is an exterior site or brand identification sign, which is double-faced, pole-mounted and internally illuminated. ZSC also provides a full complement of related services, including graphics design, production engineering, expedited manufacturing and delivery, installation management and maintenance.
Throughout FY2004, the Company faced a significant rise in raw material costs, specifically in steel and resin prices. The rise in these material costs proved challenging for the Company with only a portion of increased cost passed through to the customer base. In addition to rising costs, delays in some customers re-imagining programs affected top line revenues directly impacting the absorption of fixed cost and manufacturing overhead.
SSG was engaged to explore strategic alternatives for ZSC including, a sale or a restructuring. SSG’s professionals assisted ZSC in the sale of its assets to Federal Heath Sign Company under Article 9 of the Uniform Commercial Code. The transaction closed in October, 2005.