SencorpWhite Finds Strategic Stalking Horse Bidder for Sale
SencorpWhite Appoints MSI Automate as Stalking Horse Bidder
SencorpWhite Inc. has recently announced a significant development in its Chapter 11 sale process. The Northern District Bankruptcy Court has approved MSI Automate, a notable player backed by Grays Peak Capital, as the stalking horse bidder for acquiring the assets of SencorpWhite's operational businesses. This strategic move is expected to facilitate a smoother transition as SencorpWhite navigates its restructuring efforts.
Details of the Agreement
The purchase agreement set by MSI Automate includes a total acquisition consideration of approximately $40 million. This figure encompasses a cash component of $13.5 million along with the assumption of various customer-related and lease liabilities, as well as certain prepetition trade accounts payable. The firm's role as a stalking horse bidder is pivotal, as it establishes a benchmark for any competitive bids that may arise.
Timeline for Bids and Auctions
Under the current timeline, the qualified bid deadline is projected for April 21, with the auction following around April 30. This provides a short window for interested parties to step forward with higher and better offers. Once this process is completed, SencorpWhite expects to finalize the sale promptly.
Engagement for Potential Buyers
Potential bidders eager to explore this transaction are encouraged to reach out to SencorpWhite's investment banker, Gordian Group LLC. Interested parties will be required to sign a non-disclosure agreement (NDA) to gain access to a data room and other vital details concerning the sale.
CEO Statement's on the Decision
Corey Calla, the Chief Executive Officer of SencorpWhite, expressed confidence in the decision to appoint MSI Automate as the stalking horse bidder, emphasizing the importance of stability during this restructuring phase. Calla noted, 'This decision is crucial for maintaining the long-term viability of SencorpWhite and ensures that our employees, customers, and partners are confident in our future.' He extended gratitude to the company’s employees for their unwavering dedication during a challenging period, reflecting the team's resilience.
Support Team Behind the Process
The collective expertise of several professional groups has been instrumental in guiding SencorpWhite throughout this process. Allen Overy Shearman Sterling LLP is acting as legal counsel, while Gordian Group LLC serves as the investment banking advisor. Additionally, Getzler Henrich and Associates LLC is providing financial advisory support in this critical juncture.
About SencorpWhite
SencorpWhite stands out as a manufacturer dedicated to vertical storage solutions and heat-sealing equipment, while also offering advanced software solutions tailored for warehousing and distribution sectors. Focused on efficiency and cost reduction, SencorpWhite delivers customized offerings backed by robust in-house engineering and extensive aftermarket services throughout the United States.
Frequently Asked Questions
What is the role of MSI Automate in this process?
MSI Automate has been appointed as the stalking horse bidder, which means they will set the initial bid that other potential buyers must surpass.
How much is MSI Automate bidding for SencorpWhite's assets?
The total bid amount from MSI Automate is roughly $40 million, which includes cash and the assumption of certain liabilities.
What is the timeline for submitting bids?
The deadline for qualified bids is April 21, followed by an auction around April 30.
Who should interested bidders contact for more information?
Interested parties should contact the Gordian Group LLC for further details and to enter a non-disclosure agreement.
What services does SencorpWhite provide?
SencorpWhite offers vertical storage and sealing equipment, along with software solutions designed to improve efficiency and reduce costs in warehousing and distribution.
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