Liberty Distribution Case Study

Recapitalization lets Liberty’s founder take money off the table, share equity with the management team, and build a balance sheet for growth

Overview
  • Liberty pioneered the direct-to-store distribution of confections and snacks to the check out aisle for non-food retailers in 1998
  • Company had achieved sales of over $40 million by 2007
  • Founder desired liquidity to diversify net worth but wanted to remain with the Company and give his Senior Team equity in the transaction
  • Recapitalization with CCCM completed in 2008 with management owning over one third of the equity
gummy-bears

liberty-jim
Results
  • Capital facilitated future growth in plant capacity and sales
  • Hired additional senior executives to augment team
  • Significant ownership/incentives for highly motivated employees
  • Enhanced management information/sales systems to monitor progress and pursue more prospective accounts
  • CCCM assisted in execution and funding of acquisition of major competitor
  • Expanded customer base and market share- sales increased 400% in four years
  • Industry leadership position was significantly enhanced
  • Recapitalized in 2010 allowing management to repurchase majority stake and CCCM garnered a return of 4.3X the original investment
  • Sold to Vistar Inc in June 2012 at a price of nearly 8X CCCM’s original price