A leading manufacturer based in Southeastern Wisconsin recently navigated a transformative business shift following the largest brand divestiture in the company’s history. This pivotal change pushed the company to move away from brand management and focus on contract manufacturing. Faced with the challenge of adapting to this new direction, the company needed a financial partner who could provide the flexibility and resources to support their ambitious transition.
First American Bank stepped in to provide a comprehensive and tailored financing solution totaling $15 million, supporting key aspects of the company’s operations. A larger working capital line of credit was established to support day-to-day operations, ensuring the company could smoothly align with its evolving business model. In addition, a multi-draw equipment facility was structured to facilitate the acquisition of advanced contract manufacturing equipment, essential for ramping up production capacity. The financing package also included a cash-out component, providing the company with additional financial flexibility.
In recognition of the company’s long-term needs, First American Bank separated out the commercial real estate financing, creating future flexibility for potential real estate adjustments as the business grew and adapted.
This strategic financing package enabled the company to successfully execute its transformation strategy. It allowed them to make a modest distribution to maintain stakeholder confidence, while acquiring the essential equipment needed to ramp up their new contract manufacturing operations. As the company entered its peak buying season, the increased financial resources and production capacity ensured they could meet surging demand without compromising on quality.
With the right financial structure in place, the company was empowered to scale its operations and thrive in the competitive contract manufacturing space. Thanks to First American Bank’s customized approach, the company now stands on a solid foundation for future growth, remaining agile and ready to capitalize on new market opportunities.
