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The expected
closing of a deal for TCG International (TCG) to acquire Coolidge
Glass, Inc. apparently fell through yesterday. The agreement, on the heels
of a Letter of Intent, would have had TCG set up two separate subsidiaries;
Coolidge Distribution, Inc. ('CDI'), and Coolidge Manufacturing, Inc.
('CMI'). Coolidge Glass, headquartered in Wisconsin, has numerous
facilities, engaged in auto glass, flat glass, and metal distribution,
as well as the manufacturing of insulated and tempered
glass.
According to
Wells Fargo Business Credit, TCG had tentative approval for a
'mid-seven' to 'low-eight' figure' amount for the assets of the
distribution part of the business, and a 'mid-seven' figure for the
insulated and metal fabricated assets. Both were subject to the closing of
the sale.
The 'bulk
notice of sell' was released last week, indicating an 'asset only'
sale, and a 'secured' creditors meeting was held on Wednesday. Preliminary
indications are that financing on the Coolidge side could not be
satisfactorily arranged. A last minute deal with the bank(s) and
creditors was unable to be finalized. According to industry insiders,
the largest creditor is Ford / Carlite, with a large sum owed on
inventory. Other large creditors include Tubelite, Inc., LOF, and
Viracon.
Comments in
TCI Memorandums (see links below) summarize that capital outlay, over
expansion, and a sluggish market with low margins preceded the
decision to sell the company.
It had been
known by many in the industry that Coolidge Glass was attempting to
find a buyer for the company earlier this year, and possible scenarios
were floated to sell off just the auto glass, just the distribution
division, or a combination thereof.
Calls to the Wisconsin
Corporate office and Branch Warehouses went unanswered late Monday
afternoon and Tuesday, and employees reported late Monday that they were told to "clean out their desks and
remove all personal property" at the end of the day. Distributors
in markets that Coolidge services also reported an influx of inquiries
and sales activity.
The outcome
of these events are uncertain. It is not clear if Coolidge will go
into receivership, bankruptcy, or if another alternative last-ditch
effort can save the deal.
Related Documents:
TCG Memorandum
on Coolidge Distribution, Inc.
TCG Memorandum
on Coolidge Manufacturing, Inc.
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