Hands-on financial restructuring and operational turnaround
In 2012, Veridiam was facing limited liquidity, a payment default under its mezzanine loan, and an October maturity of its credit facility. The company, a value-add build-to-print contract manufacturer of highly engineered metal solutions serving the medical, aerospace, nuclear, dental and industrial markets, had numerous opportunities for operational improvements but limited resources to capitalize on them. We initially provided capital to pay off the mezzanine loan and introduced a new first lien lender to replace the company’s credit facility, and over the course of our investment, we made additional follow-on equity investments to support operational initiatives. We led an operational turnaround of the company, which included putting in place a new management team and sales organization, revamping the company’s cost structure, streamlining operations and manufacturing processes, and divesting a non-core subsidiary in Costa Rica. We remain actively engaged with management to drive continuous operational improvements and growth initiatives.