Rehrig International, Inc.

Client Profile
Rehrig International, Inc. (“Rehrig” or the “Company”) is among the world’s largest manufacturers of plastic shopping carts. Founded in 1975, Rehrig developed the world’s first plastic shopping cart and has continued to develop and patent a wide variety of other injection-molded products such as plastic handbaskets, dollies, material handling equipment and point-of-sale display fixtures. The Company manufactures out of a fully integrated, state-of-the-art, 317,000 square foot facility located in Chesterfield County, Virginia, approximately seven miles south of Richmond.
Situation
Despite the Company’s strong presence within the shopping cart industry, Rehrig faced several challenges that contributed to overall financial difficulties. Some of the issues faced included (i) an unprecedented increase in raw material prices of resin (an oil based product) and steel, which increased year over year by 35% and 56%, respectively and the implementation of internet-based reverse auctions, leading to an overall reduction in per unit prices and the loss of a major customer.
Solution
SSG was retained by Rehrig to assist the Company exploring strategic alternatives. Rehrig considered a variety of transactions, but ultimately decided on a restructuring and recapitalization of its balance sheet with the existing mezzanine investors. The transaction closed in May 2005. The SSG investment bankers who provided financial advisory services to Rehrig International were Matthew P. Karlson (Managing Director) and T.J. Haas (Vice President).