After revenues declined by 30% over two years and EBIDTA turned negative, the lender for Benda Conveyor Solutions cut funding and initiated foreclosure in November 2021. By January 2022, most employees had been laid off, payrolls were missed, and the company was days away from permanent closure.
The bank brought it to BSC as a liquidation deal, but we saw value, quickly diligenced and ultimately purchased Benda as a going concern a month later, along with our partner, Iroquois Industrial Group.
The lender enjoyed a full recovery, 23 jobs were saved, and we plan to expand into other markets and leverage synergies with our other portfolio companies.