Climate Control, Tillotson Products and Seal Products

Client Profile
Climate Control, Tillotson Products and Seal Products (collectively, the “Company”) are operating divisions of DemirCo Industries, LLC. Climate Control primarily manufacturers truck air-conditioning compressor products servicing the medium and heavy duty trucking aftermarket (Class 6-8). In addition to its compressor product line, Climate Control offers machined components to the automotive, flat panel capital equipment, aerospace and agricultural industries; fuel systems and solenoids for the marine and small engine markets through its Tillotson Products division; and mechanical and carbon seals for the heavy duty trucking and automotive aftermarkets through its Seal Products division.
Situation
The credit facility under which the Company operated was cross-collateralized by the assets of several co-borrowers on a joint and several basis. Due to losses attributed to one of the co-borrowers the loan agreement was deemed to be in default.
Solution
SSG was engaged to explore strategic alternatives for DemirCo and its divisions and affiliates including a full or partial sale or a restructuring. SSG assisted DemirCo in the sale of the Company’s assets to CCI Acquisition Company, LLC. The transaction closed in August, 2005.