Rosenthal & Rosenthal completed two transactions, including a $35 million acquisition deal for a large consumer products importer and a combined $3 million purchase order financing and factoring deal to support an established footwear company.
Rosenthal was approached by the principals of a NY-based importer and distributor of various consumer products who had an opportunity to make a significant acquisition which would enable the company to expand into the footwear sector. Recognizing the significant growth opportunity at stake, Rosenthal provided $35 million of financing – both acquisition funding and working capital – that positioned the company to acquire a well-established, closely held importer of branded and private label footwear.
“We’re pleased we were able to provide such an effective one-stop solution that allowed this client to take advantage of a significant growth opportunity, without having to raise additional capital or dilute their ownership,” Michael Cipriani, EVP of business development at Rosenthal, said. “With Rosenthal’s flexible financing and our ability to leverage existing assets, the company was able to successfully execute this important acquisition.”
In a separate transaction, a footwear industry veteran was interested in pursuing new opportunities after primarily focusing on sourcing footwear products in conjunction with a large trading company. The client saw an opportunity for additional growth if he could successfully convert the business from a sourcing business to a full-scale importer/distributor model. To accomplish this, the company required a combination of factoring and purchase order financing to support the shifting capital needs of the business. Rosenthal stepped in to provide a $1 million purchase order financing line to assist with the purchasing of inventory for pre-sold orders to various customers and $2 million in non-recourse factoring. As part of the transaction, Rosenthal utilized letters of credit, issued cash against documents and provided funding for freight, duty and warehousing costs, as well as credit protection and financing of the account receivables.
“This transaction is a perfect example of Rosenthal’s expertise in helping clients navigate new and significant growth opportunities, especially in such a challenging economic environment,” Joel Wolitzer, SVP of business development at Rosenthal, said. “Our ability to provide a range of sound and flexible financing solutions that address the evolving needs of today’s businesses consistently position our clients to expand their footprints and ensure that more of their products reach their customers.”
