SCITECH Plastics Group, LLC

Client Profile
SCITECH Plastics Group, LLC (‘SCITECH’ or the ‘Company’), headquartered in West Brookfield, MA, is a full service plastic injection molder focusing primarily on medical products.
Situation
SCITECH was formed in August 2001 by the merger of two companies, which together comprised seven precision molding, tooling, and rapid prototyping operations representing a 50-year history serving the plastics industry. Over the next two years, SCITECH’s revenue declined due to the weakness of the broader U.S. economy and pricing pressure from customers. Despite cost reductions, liquidity continued to be tight as a result of an overleveraged balance sheet predicated on a growth economy following the merger.
Solution
SSG was retained in November 2003 to explore SCITECH’s strategic alternatives in order to maximize value to the secured creditors. The transaction closed in December 2003.