Earthfirst®

Company Profile

Earthfirst® is a leading developer, manufacturer, and distributor of sustainable bio-based and biodegradable films and solutions for the food, beverage, medical, personal care, office, industrial, and other CPG segments and industrial applications. The Company’s patented packaging solutions allow for mass production of sustainable alternatives to traditional petroleum-based plastic films. The Company’s products are utilized for laminations, pouches, bags, mailers, shrink sleeves, window packaging, envelopes, flow wraps, transparent sealants, barrier sealants, print webs, adhesive labels, and thermoforming laminates.

Situation

SSG was retained in August 2024 to serve as Earthfirst’s exclusive investment banker in the exploration of strategic alternatives, including an investment in the business or the sale of its assets. In order to preserve liquidity and maintain operations, Earthfirst® elected to file for protection under Chapter 11 of the U.S. Bankruptcy Code on December 22, 2024. Prior to the filing, SSG conducted an expansive marketing process that targeted a broad universe of strategic and financial investors. A Stalking Horse buyer emerged after extensive diligence coordination and negotiations, and the Court approved the Stalking Horse Bid from Aluf Plastics of $13.0 million in conjunction with the bid procedures.

Solution

SSG commenced an expedited and comprehensive post-petition marketing process to solicit competing offers to the Stalking Horse Bid. One competing qualified bid was submitted by LicaFlex Packaging USA prior to the January 21, 2025, bid deadline. An auction was subsequently held on January 27, 2025, and multiple rounds of bidding took place. The final bid submitted by Aluf Plastics was ultimately deemed highest and best at a gross purchase price of $16.3 million, inclusive of Stalking Horse Bid protections and an inventory reserve adjustment.

SSG’s extensive Chapter 11 transaction experience and ability to create a competitive auction environment enabled the Company to repay its secured creditor in full and preserve the business as a going concern for the benefit of customers, vendors, and employees.