Ravinia Capital Completes Sale of Allied Healthcare Products through a Chapter 11 Section 363 Bankruptcy Process

Ravinia Capital along with MorrisAnderson secured funding and DIP financing while running an extensive sales process to finally identify an international buyer for this legacy medical product company.

CHICAGO, Aug. 7, 2023 /PRNewswire-PRWeb/ -- Ravinia Capital LLC, a Chicago-based boutique investment bank specializing in sell-side M&A advisory and 363 bankruptcy sales, is pleased to announce the sale of Allied Healthcare Products to Allied Medical LLC (dba Flexicare) through a Chapter 11 Section 363 sale process overseen by the bankruptcy court of the Eastern District of Missouri. The transaction closed on July 12, 2023.

Allied is a leading manufacturer and provider of healthcare equipment centering on patient ventilation and gas delivery systems and components. Its products are sold under a variety of brand names. Allied's products are so common today that their piping system for medical gas supply is a standard in the medical and dental healthcare industries. Despite this history, and due to severe liquidity constraints, the Allied Board was left with few options and faced liquidation.

After a WARN notice was announced in December 2022 the Bankruptcy Court approved Ravinia Capital's retention. Ravinia, working together with MorrisAnderson, quickly secured a new $2.5M loan from Sterling Commercial Credit. Sterling also agreed to become the DIP lender during the bankruptcy process and 363 sale.

"We at Sterling saw a great opportunity in providing financing for Allied. Our robust diligence process, speed of execution and holistic credit approach allow Sterling to provide its clients with bespoke capital solutions. We believe in the Company, its management team, and the plan that Ravinia Capital and MorrisAnderson have put together," said Gerry Paez, CEO, Sterling Commercial Credit.

Tom Goldblatt of Ravinia Capital then launched a full-scale sales process marketing Allied to more than one thousand private equity firms and strategic buyers. Working closely with Akash Amin of MorrisAnderson; Bankruptcy Counsel from Spencer Fane, LLP; and Corporate Counsel from Greensfelder Law Firm, Goldblatt was able to secure a stalking horse bid from Flexicare for a price amounting to more than four times projected liquidation returns.

The sale ultimately retained more than 65 jobs, paid the landlord two years' worth of lease payments, recouped trade vendors a substantial recovery on the dollar of their pre-petition balances and ensured that these key lifesaving products will be available on the marketplace for years to come.

"This case is a great example of turnaround professionals adding value. We had it all: liquidation, wholesale layoffs, a refinance, operational stabilization and ultimately a going concern sale. All while preserving jobs, resolving environmental issues, and creating substantial credit returns," said Eric Peterson of Spencer Fane.

The transaction officially closed at a final purchase price of $8.9M, more than four times recovey over initial projections.

The sell-side professional advisors on the transaction were:

Investment Bankers, Ravinia Capital LLC
Tom Goldblatt, Managing Partner
Eric Brook, Analyst

Turnaround Consultants, MorrisAnderson
Mark Welch, Principal
Akash Amin, Director

Bankruptcy Counsel, Spencer Fane, LLP
Eric Peterson, Of Counsel
Zach Farlie, Partner
Ryan Hardy, Partner
Camber Jones, Associate

Corporate Counsel, Greensfelder Law Firm
Joe Lehrer, Of Counsel
Ed Chod, Officer

DIP Lender, Sterling Commercial Credit
Gerry Paez, CEO

About Ravinia Capital:

Ravinia Capital LLC is a middle market investment bank headquartered in Chicago, IL. The firm is a trusted advocate for companies who are looking for capital to invest for future growth, buy more time in tough situations, or facilitate succession, ownership transition or exit strategies. Ravinia specializes in merger and acquisition advisory services, capital raises (including debt refinancing), and helping clients develop and execute strategic alternatives. The firm has distinguished itself by building a track record of successful engagements that optimize outcomes by working with clients to uncover the range of options available to them.

www(dot)raviniacapitalllc(dot)com

Pull Quote

This case is a great example of turnaround professionals adding value. We had it all: liquidation, wholesale layoffs, a refinance, operational stabilization and ultimately a going concern sale. All while preserving jobs, resolving environmental issues, and creating substantial credit returns.

Media Contact

Shari R Giddens, Ravinia Capital LLC, 1 2244227764 2244227764, [email protected], www.raviniacapitalllc.com

SOURCE Ravinia Capital LLC