SSG Advises Canal Asphalt, Inc. in the Sale of Substantially All of its Assets to Peckham Industries, Inc.
SSG Capital Advisors, LLC (“SSG”) acted as the investment banker to Canal Asphalt, Inc. (“Canal” or the “Company”) on the sale of substantially all its assets to Peckham Industries, Inc (“Peckham”). The transaction closed in June 2016.
Canal owned and operated an asphalt plant located in Mount Vernon, New York. The plant had capacity to produce in excess of 300,000 tons of various asphalt mixes per year and its customers included contractors of the Department of Transportation for New York City and New York State, the New York City Department of Design and Construction, Westchester County municipal pavers, local parking lot and driveway paving companies and local utility companies such as Con Edison and Verizon.
The Company had operated the plant profitably since 1986 until a related entity that served as its primary customer began to experience economic difficulty. This entity engaged in construction and paving activities and had experienced bonding capacity constraints in 2013 which affected its ability to procure contracts. The resulting operating losses and inability to replace sales from its core customer forced the Company to file for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York in July, 2015. Canal had secured a stalking horse bidder in conjunction with a plan of reorganization but the Bankruptcy Court required the Debtor to run a simultaneous sale process to market test the plan valuation. SSG was engaged as the exclusive investment banker to run the sale process and solicit competing offers. SSG’s marketing process resulted in a highly competitive and robust auction where the offer from Peckham was ultimately deemed to be the highest and best for substantially all of Canal’s assets, maximizing value to the Company’s stakeholders.
Peckham Industries, Inc. engages in the production and distribution of construction materials. It offers asphalt pavements, aggregates, asphalt binders, emulsions, liquids and ready-mixed concrete.
Other professionals who worked on the transaction include:
Gary M. Kushner, Scott D. Simon and Donald J. Carbone of Goetz Fitzpatrick LLP, counsel to the Debtor;
Kevin J. DeLuise, of CohnReznick LLP, financial advisor to the Debtor;
Andrew C. Gold and Robert L. Rattet of Herrick Feinstein LLP, counsel to Peckham;
Jonathan S. Pasternak and Erica R. Feynman Aisner of DelBello Donnellan Weingarten Wise & Wiederkehr, LLP, counsel to PCI Industries, Inc.;
Jay Teitelbaum of Teitelbaum Law Group, counsel to PCSB Bank;
David M. Capriotti of Harris Beach, PLLC, counsel to C.L. Consulting Management; and
Arthur J. Muller of Trivella & Forte, LLP, counsel to Local 456.