Bridgewell Resources

Bankruptcy restructuring

Sectors: Supply Chain Management, Building Materials, Infrastructure, Distribution

 

Company

  • Predecessor founded in 1948 as North Pacific, Inc., which ultimately became one of the largest companies in the State of Oregon.

  • A leading supply chain management service provider of construction products, utility supplies and wood products to customers across the globe

Opportunity

  • North Pacific experienced a liquidity crisis driven by negative performance in its lumber yard segment

  • After failed attempts to raise additional capital, the company was placed into receivership and a court ordered auction process for the assets was initiated.

Investment Thesis

  • Uncertainty precipitated by the receivership process created an attractive valuation at entry point.

  • Assets acquired and employees hired were linked to the attractive supply chain management businesses that had remained profitable during the company’s crisis.

  • High performance sales organization with deeply entrenched relationships with key accounts

  • Highly scalable and financeable business model

Execution

  • The founder of Point Cove led a transaction which prevailed as the stalking horse bidder for the attractive supply chain management assets

  • Conservative capitalization permitted the company to absorb initial losses during transformation.

  • Investments in key talent, IT infrastructure and risk management policies and procedures enhanced the company’s value proposition and improved risk adjusted returns on capital employed.

Outcome

  • Bridgewell has become a world-class, sustainable and valuable organization, having achieved world-class safety performance and record profitability.