Dinex International Inc. was a leading supplier of foodservice equipment and supplies to the healthcare and other institutional industries.. Dinex supplies traytop smallwares, dishware, disposable lids, packaging, food service equipment including heating and meal delivery systems.
Competition between Dinex and Seco Systems, a company backed by First Chicago Private Equity, had been intense given the limited number of competitors in the industry. Dinex management came to determine that an acquisition of Seco would be beneficial to the Company.
CMM had advised Dinex on an appropriate price for Seco, one which was not acceptable to First Chicago. Subsequently, Seco experienced operating problems that led to their bankruptcy. CMM, along the Dinex team, immediately traveled to Seco headquarters, met with the trustee, conducted due diligence and structured an acceptable transaction at a fraction of the ongoing concern value. In addition, CMM helped negotiate the appropriate financing package from the bank and closed the transaction in less than six weeks.