SC&H Capital provided advisory services to Precision Swiss Products, Inc. (PSP) on the sale of its assets to GCM Medical & OEM, Inc. This transaction followed a challenging period for PSP, which faced operational setbacks due to delays in the build-out of a new facility, industry downturns, and regulatory hurdles.
PSP, a leader in precision manufacturing for industries such as medical devices, aerospace & defense, and semiconductors, had previously experienced strong growth. However, by 2023, the company encountered financial difficulties, including a significant revenue decline and missed business opportunities due to a lack of working capital. As a result, PSP entered Chapter 11 bankruptcy.
SC&H Capital stepped in to help maximize the value of PSP’s assets. First, by arranging DIP (Debtor-in-Possession) financing with PSP’s main lender, SC&H was able to help ensure operational continuity during bankruptcy proceedings. SC&H then negotiated a stalking horse bid from BTX Precision Company and launched a comprehensive marketing campaign to generate additional interest in the company’s assets. This campaign attracted over 60 potential buyers, including a mix of strategic, financial, and machinery-focused companies.
In a competitive auction, GCM emerged as the winning bidder and secured the assets of PSP. This successful deal ensures the continued provision of high-quality components for PSP’s established Fortune 500 customer base while retaining critical personnel.
“I would like to thank Hank Waida and the team at SC&H Capital for quickly analyzing our situation and creating a process that brought several buyers to the table willing to purchase the company’s assets and employ critical members of the management team, engineers, and staff,” said Norbert Kozar, CEO, Precision Swiss Products, Inc., “We are confident GCM will continue to provide the quality of work our customer base has come to expect.”
“We are extremely pleased that GCM will be hiring many of PSP’s highly skilled engineers and staff and continue to supply PSP’s customer Fortune 500 customer base, especially in cases where they have been the sole-source provider of crucial components for these customers,” said Hank Waida, Principal at SC&H Capital.
About SC&H Capital
SC&H Capital is an investment banking and advisory firm specializing in mergers and acquisitions (M&A), employee stock ownership plans (ESOP), distressed M&A, and business valuations for middle-market companies nationally. SC&H Capital delivers services across numerous industries including technology, healthcare, manufacturing, business and professional services, and government contracting. We are recognized for delivering relevant market insights and tailored solutions to help owners achieve their true strategic value. To learn more, visit www.schcapital.com.
