Company Overview
Modern Precast Concrete, Inc., debtor-in-possession (referred to as “Modern” or the “Company”), with facilities in Easton, Pennsylvania and Ottsville, Pennsylvania, is a leading manufacturer and distributor of precast concrete structures, pipes and related products, with a strong niche in precast modular buildings. Modern has been in business for over 60 years and has a recognizable reputation for quality products and services. The Company differentiates itself by designing processes to cost effectively precast products that were traditionally “poured-in-place” or produced via conventional construction methods. Modern is considered a single source supplier of virtually every precast product needed for residential, commercial/industrial, Department of Transportation and municipal products.
Situation
In the early to mid-2000’s, Modern was predicting a rapid increase in national and regional infrastructure spending and opened its state-of-the-art Easton facility for a total cost of over $20 million in 2006. As the economy slowly deteriorated, Modern reacted by consolidating certain facilities, but the high leverage resulting from the construction and start-up of the Easton facility left Modern in a challenging financial position.
Solution
Modern retained Griffin as its exclusive financial advisor in the sale of the Easton plant and operations, the related Easton real estate, and certain assets of its Ottsville operation, to prospective purchasers. Griffin ran an auction process and identified the highest bidder as OldCastle Precast, Inc., a subsidiary of OldCastle, Inc. (the North American subsidiary of CRH, plc). OldCastle Precast, Inc. is one of the largest manufacturers of building products in North America. The Company filed a Chapter 11 bankruptcy proceeding with the intention of pursuing a sale of a substantial portion of its assets pursuant to section 363 of the bankruptcy code, whereby OldCastle Precast, Inc. would be the stalking horse bidder. Griffin remarketed the Company, but the stalking horse bid was deemed the highest and best bid, which resulted in the sale of the assets of Modern to OldCastle Precast, Inc. which closed on January 29, 2013.
For more information on this transaction, contact Thomas G. Whalen, Managing Director, at 610.205.6115 or Glenn S. Bernabeo, Managing Director, at 610.205.6034.
