SSG Capital Advisors acted as the investment banker to Mairec Precious Metals U.S. in the sale of substantially all of its assets to BASF.
The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of South Carolina. The transaction closed in October 2019.
Headquartered in South Carolina, Mairec, the U.S. subsidiary of a German company, is a recycler and processor of precious metals. The company utilizes its proprietary equipment and processes to recover these valuable noble metals from industrial waste that is primarily composed of catalytic converters from automobiles.
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After establishing its U.S. presence in 2015 and ramping up operations, Mairec began facing challenges that adversely affected financial performance. Circumstances with select suppliers and customers resulted in discontinued relationships and litigation that overburdened the company. While Mairec initiated a go-forward plan to stabilize the operations, the company determined that filing for Chapter 11 protection provided the best opportunity to effectuate a transaction to maintain the business as a going concern.
SSG was retained by Mairec to conduct a comprehensive marketing process and solicit offers for the company. The process attracted interest from multiple parties that engaged in a thorough review of the business, with BASF’s offer ultimately being the highest and best bid. SSG’s industry knowledge and experience with efficient Chapter 11 sale processes enabled stakeholders to maximize value while preserving jobs.
BASF is the North American affiliate of BASF, the largest chemical producer in the world.
