Avadim Health, Inc.

Client Profile

Avadim Health, Inc. (“Avadim” or the “Company”) is a leading healthcare and wellness company that develops, manufactures, and markets topical products for immune, muscular and skin health to institutional and consumer markets.  Based in Asheville, NC, Avadim is vertically integrated and has commercialized several products through its two primary brand families: Theraworx Protect and Theraworx Relief.  Avadim’s products can be found in ~50,000 retail locations and over 1,000 leading hospitals and long-term care facilities.

Situation

As an emerging consumer products company, Avadim experienced liquidity constraints preventing it from effectively bringing new products to market and executing its growth strategy and operational turnaround.  Avadim filed for bankruptcy protection in May 2021 to recapitalize its balance sheet and provide additional liquidity and resources to drive product development, enhance retail awareness and capture additional share in the robust self-care market.

Solution

SSG was retained in May 2021 with a short timeline to conduct a comprehensive sale process. Hayfin Capital Management successfully negotiated a Stalking Horse Agreement to preserve the business as a going concern.  A comprehensive sale process attracted interest from multiple strategic and financial acquirers, but ultimately the Stalking Horse’s bid proved to be the highest and best offer for the Company’s assets.  SSG’s special situations expertise, significant experience in the healthcare and consumer products industries and proven ability to close transactions quickly during the COVID-19 pandemic enabled Avadim to complete an expedited transaction that maximized value for all stakeholders.