When confection manufacturer F&F Foods lost access to financing due to a restrictive forbearance agreement, Gordon Brothers stepped in to keep the business running. After evaluating the underlying enterprise value, we were drawn to the company’s brand portfolio, unique manufacturing profile and the real value of the company’s leveraged assets, despite the company’s short term financial hurdles.
Looking at F&F’s healthy pipeline and robust manufacturing infrastructure, we saw significant upside for the company’s EBITDA and chose to acquire the company’s senior debt. The influx of capital from Gordon Brothers allowed F&F Foods to make capital improvements, ramp up its marketing efforts, and land new production contracts.
Once the business had been successfully turned around, we sold our senior debt position in support of a going concern sale of the business. The company is now financially stable and poised for growth.