SSG Capital Advisors, LLC (SSG) acted as the investment banker to Mairec Precious Metals U.S., Inc.
in the sale of substantially all of its assets to BASF Corporation. The sale was effectuated through a
Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of South Carolina. The
transaction closed in October 2019. BASF Corporation is the North American affiliate of BASF SE,
which is the largest chemical producer in the world.
Headquartered in South Carolina, Mairec, the U.S. subsidiary of a German company, is a leading
recycler and processor of precious metals. The Company utilizes its proprietary equipment and
processes to recover these valuable noble metals from industrial waste that is primarily composed of
catalytic converters from automobiles.
Since successfully establishing its U.S. presence in 2015 and ramping up operations, Mairec began
facing challenges that adversely affected financial performance. Circumstances with select suppliers
and customers resulted in discontinued relationships and litigation that overburdened the Company.
While Mairec initiated a go-forward plan to stabilize the operations, the Company determined that
filing for Chapter 11 protection provided the best opportunity to effectuate a transaction to maintain
the business as a going concern.
SSG was retained by Mairec to conduct a comprehensive marketing process and solicit offers for the
Company. The process attracted interest from multiple parties that engaged in a thorough review of
the business, with BASF's offer ultimately being the highest and best bid. SSG's industry knowledge
and experience with efficient Chapter 11 sale processes enabled stakeholders to maximize value while
Other professionals who worked on the transaction include:
- Janet B. Haigler of Haigler Law Firm, LLC, Chapter 11 Trustee for Mairec Precious Metals U.S.,
- Stanley H. McGuffin and Mary M. Caskey of Haynsworth Sinkler Boyd, P.A., counsel to the
Chapter 11 Trustee for Mairec Precious Metals U.S., Inc.;
- Charles N. Persing and Marco A. Bonelli Jr. of Bederson LLP, Operational Consultant to the
Chapter 11 Trustee;
- G. William McCarthy, Jr, W. Harrison Penn and Daniel J. Reynolds, Jr. of McCarthy, Reynolds,
& Penn, LLC, counsel to Mairec Precious Metals U.S., Inc.;
- David M. Baker, Laura C. Kendall, Andrew M. Blaesing, Travis M. Grody and Catherine R.
Kendall of Aurora Management Partners, LLC, Chief Restructuring Officer and financial advisor
to Mairec Precious Metals U.S., Inc.;
- Michael M. Beal, Tara E. Nauful and Adam J. Floyd of Beal LLC, counsel to the Official
Committee of Unsecured Creditors; and
- R. William Metzger, Jr. and Molly M. Campolong of Robinson Gray Stepp & Laffitte, LLC,
counsel to BASF Corporation.
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