Study

F.N.B. Capital Corporation Case Study
Corporate Divestiture

Corporate divestitures and/or leveraged spin-offs of business units occur for a number of reasons.  Businesses may be profitable, but they may not be meeting the core growth objectives of the parent company, or the parent company may want to raise cash or realize a return on its investment.  F.N.B. Capital Corporation partners with the company's management team or an equity sponsor to purchase these divestitures or spin-offs, thereby creating a new stand-alone company.
 

Viking Platic 

Viking Plastics, Corry, Pennsylvania

The C.E.O. of this Corry-based plastic injection molder contacted F.N.B. Capital Corporation to provide a portion of the funding necessary to purchase this company from its corporate parent, a U.S.-based plastics conglomerate.

Actions

  • The mezzanine debt provided by F.N.B. Capital completed the funding raise needed to consummate the acquisition. This, along with a substantial investment by management, allowed the C.E.O. to take full control of his business unit. 

Results

  • Viking Plastics has successfully implemented several process improvement and profitability enhancement strategies since the acquisition, which have bolstered performance.
  • The results-driven C.E.O. continues to provide leadership and has helped his team of highly motivated individuals uncover new opportunities for the company to diversify its revenue base.
  • F.N.B. Capital continues to provide strategic support by introducing additional revenue opportunities to the company.