The Company
Two Pacific-based companies operating under common ownership. One company manufactures polyethylene packaging, transitioning away from traditional plastic products in response to California’s evolving environmental regulations. The second collects and repurposes organic food waste from major retailers including Amazon and Costco, processes it into animal feed and energy, and sells the finished products to its customers. The business benefits from two revenue streams: retailers pay for waste removal while customers purchase the finished feed.
The Situation
Both companies were operating at a loss. Financial pressures became so severe that the ownership group was preparing to close the businesses. Rather than allow that to happen, a new owner (someone who had previously worked with the original ownership group) stepped in with a vision to turn the companies around. The turnaround strategy focused on investing in updated equipment and improving operational efficiencies while preserving jobs. The challenge was that there was no financing in place to support the transformation.
The Solution
To execute the recovery plan, the owner needed immediate working capital. Celtic Capital was introduced to the companies through a trusted intermediary and provided a $3 million Accounts Receivable Line of Credit. The financing funded the equipment installation and supplied additional working capital to support and expand day-to-day operations.
The Result
With financing in place, the companies were able to:
- Install critical production equipment.
- Improve operational efficiency.
- Restructure staffing to better align with production needs.
- Support revenue growth.
- Preserve jobs while positioning both businesses for long-term success.
Today, both companies are moving steadily toward profitability with a stronger operational foundation and the financial flexibility to continue growing.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power, and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset-based financing solutions from $500,000 to $8 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at celticcapital.com.