Divestiture of Non-strategic Subsidiary

Challenge

Parent Company wished to divest of a $130MM steel service center with significant environmental issues. Previous attempts to realize targeted valuations were unsuccessful.

Solution

Established and reviewed the disposition process with local company management, solidified their employment contracts, and obtained agreement as to procedures.  Worked with company officers to select and then managed investment bankers, attorneys, environmental consultants, and successfully negotiated contract terms.  Significant environmental matters were either remediated prior to finalizing the contract or successfully limited within the terms of the contract. Divestiture was successfully completed within target range, and with no subsequent indemnity claims.