Crafting Creative Solutions to Expand into New Distribution Channels


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Business:

Founded in 1906, the Fuller Brush Company (“Fuller” or the “Company”) is a leading manufacturer and provider of in-home and commercial cleaning products, as well as personal care products and industrial brushes. Fuller is widely known as the original “door-to-door” sales company and the iconic “Fuller Brush Man” visited over 90% of American homes at one point. More recently, Fuller has expanded its offerings to include cleaning solutions and hard-good products for commercial cleaning purposes, as well as custom and individual brush applications.


Transaction:

Due to a challenging economic environment and heavily leveraged balance sheet, Fuller was forced to declare bankruptcy in early 2012. Fuller was subsequently authorized to remain in possession of its assets and continue operations under Chapter 11 of the U.S. bankruptcy code. FocalPoint assisted Fuller in a two-part sale of the consumer and non-consumer segments of the business.


Challenges:

Fuller’s numerous business lines and diversity of end markets posed a challenge to attracting suitable acquirers and potential investors.


Solution:

FocalPoint marketed the operating assets to financial and strategic buyers, while also exploring a range of potential alternative solutions. Ultimately, FocalPoint was able to creatively and successfully structure a transaction that would allow Fuller to be sold in two separate transactions generating the highest and best value for the Company’s creditors and positioning the respective businesses to successfully move forward with minimal disruptions. By partnering Fuller’s consumer business with Victory Park Capital, the Company was able to revitalize its legacy multi-level marketing model as well as expand into new distribution channels. By selling Fuller’s non-consumer business to a local investor with significant financial resources, the business was able to remain in its home of Great Bend, KS, retain all of its local employees, and gain access to capital investment for much needed operational upgrades.

FocalPoint worked with Fuller’s management team and advisors to strategically and efficiently bring the transaction to a close. FocalPoint was also instrumental in negotiating critical ancillary transactions with respect to Fuller’s real estate assets and supply agreements, allowing for both parts of Fuller’s business to grow and thrive. The transactions involved not only the sale of assets, but the negotiation of a complex series of transition and supply agreements between both acquirers that were critical to closing the acquisition.

Fuller Brush has sold operating assets to Victory Park Capital

FocalPoint served as exclusive financial advisor to Fuller Brush

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“The combined transaction with ILS and VPC positions both parts of the business to grow and thrive, while also preserving jobs in the Great Bend area. FocalPoint’s tireless efforts to push the transaction forward were invaluable and this outcome could not have been achieved without their contribution.”

Lawrence Perkins
Managing Director of Conway MacKenzie and Chief Restructuring Officer of Fuller