Around 100 jobs at a Tennessee foodservice fabricator have been saved after investors stepped in to prevent the business being sunk by its debt.
Big Shoulders Capital and Iroquois Industrial Group have formed a joint venture to purchase the assets of Savannah All America Millwork and Fabrication in Savannah.
A new company, Savannah Industrial Solutions, has been created to manufacture metal and wood products for the restaurant and foodservice sectors, as well as a string of other industries.
Savannah All America was recognized as an innovator in several industries, particularly in restaurants where its food display counters and bars were widely used.
And that, according to Todd DiBenedetto, president of Big Shoulders Capital, is why it decided to step in.
“We saw great potential in the skills and talents of the employees of Savannah All America and believed that if we properly capitalized the business, investing in the people of this community, we could create real value for customers and preserve those jobs,” he explained.
Iroquois brings a track record of success in the metal fabrication industry with a portfolio of growing and successful companies.
Shane Dittrich, president of Iroquois, is now one of the principals of Savannah Industrial Solutions.
“We already have a strong presence in the metal fabrication industry through one of our portfolio companies, T&D Metal Products, and we’re confident we can leverage our network of customers, distributors and sales representatives to benefit Savannah,” he said. “We are looking forward to growing this business.”
Savannah was purchased by a private equity group in 2014 and the resulting debt burden proved to be more than the operations could support.
The new business will expand beyond the markets it currently serves, Mr Dittrich said.
“We will bring some additional resources to this business, including our sales and marketing expertise, as well as properly capitalizing the business so it is positioned to grow.”
The new Savannah Industrial Solutions is an independent company and part of the portfolio of companies currently operated by Big Shoulders and Iroquois Industrial.
Additional jobs are likely to be created as the business plan for the company is implemented.
The successor company traces its roots to 1991 when American Foodservice was established in Savannah as a millwork supplier to the restaurant and foodservice industries.
Big Shoulders Capital finances and invests in privately-owned commercial and industrial companies in distress or special situations.
Iroquois Industrial Group is a holding company operating eight companies in the metal fabrication, steel processing, trucking, healthcare and automotive industries.