H2 Brands Group

Client Profile

Nova Wildcat Shur-Line Holdings, Inc. and Subsidiaries, d.b.a H2 Brands Group (“H2B” or the “Company”), is a leading consumer products company with a portfolio of nationally recognized home and hardware brands. Evolving for over 135 years, H2 Brands Group is the result of a series of mergers and brand consolidations, building a one-stop shop for home and hardware products. H2B’s portfolio of brands encompasses products intended for every room of the average consumer’s home.

Situation

Historically, the Company’s individual brands have performed well with high customer demand. In late 2019, H2B completed the acquisition of a consumer electronics company, which was financed under the Company’s revolving credit facility. The Company faced limited access to additional capital under the line of credit and was burdened by operational issues related to acquisitions, labor, inventory procurement and freight costs from Asia, which further impacted liquidity. The Company was unable to pay vendors timely and procure new inventory, further disrupting operations and the ability to fulfill customer orders.

Solution

SSG was retained in December 2022 as its exclusive investment banker to advise the Company on strategic alternatives and to conduct an accelerated and comprehensive marketing process to solicit interest from strategic and financial investors. To preserve ongoing operations, H2B filed for protection under Chapter 11 of the U.S. Bankruptcy Code in January 2023. After only a few weeks of marketing, the sale process had attracted significant interest from multiple strategic parties. SSG and the Company ultimately negotiated a stalking horse agreement with Gordon Brothers and Nations Capital. With no additional qualified offers submitted prior to the Court approved bid deadline, the stalking horse bid was accepted as the highest and best offer for substantially all of the Company’s assets. The sale to Gordon Brothers and Nations Capital was approved by the Bankruptcy Court on March 29, 2023, and closed two days later. SSG’s special situations expertise and experience running expedited processes, with the assistance of Reed Smith and Carl Marks, resulted in a competitive environment that maximized stakeholder value and allowed the business to move forward under a new operator.