Case Study
Auvil Fruit Company
Overview
- Auvil Fruit Company, a leading vertically-integrated grower of tree fruit, embarked on a growth strategy largely funded by leverage.
- Additionally, Auvil had a significant amount of off-balance sheet debt resulting from an incoming management team buying out retiring shareholders.
Situation
- Auvil was impacted by several black swan weather events temporarily depressing sales in a time of high debt service obligations. They found themselves in a working capital crunch at which time they engaged Cascadia to work with the shareholder group to evaluate strategic alternatives and recapitalize the balance sheet.
Cascadia Process
- Cascadia worked with Auvil’s creditors throughout the process, getting them comfortable with the transaction and touching base with them on a weekly basis.
- Cascadia was able to get the creditors onboard with Auvil’s ideal investment scenario, maximizing value for the Company through a majority sale to Canadian agriculture investment firm Fiera Comox.
- In addition to working with Auvil’s creditors, Cascadia also worked with Auvil’s broader shareholder group throughout the process, helping Management and Fiera craft an ownership structure and payout structure that accomplished each party’s objectives, while simultaneously wiping out all off balance sheet liabilities.
Similar Case Studies
-
Debt Refinancing with Goldman Sachs Specialty Lending
-
Debt Refinancing with Breakaway Capital