CHICAGO--(BUSINESS WIRE)--Development Specialists, Inc. is currently accepting offers to acquire the assets of a leading manufacturer of contract manufactured, branded and private label cough drops, mints and candies. They also produces a wide variety of cooked lozenges, pressed tablets, powders, effervescents, vitamins and supplements, mints, antacids, zinc and organic products.
On March 18th 2009, the Company executed an Assignment For The Benefit of the Creditors. An Assignment for the Benefit of Creditors is an insolvency proceeding under state law rather than a bankruptcy which is governed under Federal Law. All creditors have been notified of the situation and the company is moving forward as a going concern with the cooperation of the creditors. The Assignee is currently managing the finances of the company with funding from the secured lender. Management and the Assignee believes that once properly capitalized, F&F Foods is poised for substantial growth in its branded product offering, continued success in its private label and contract manufacturing segments and a return to profitability.
The Company was founded in the 1936 and is located in Chicago, Illinois. Their products are sold through a variety of distribution channels including retail grocery and drug stores, vending, mass merchandisers and national dollar store chains. The gross revenue for 2009 was approximately $16,500,000 with a positive EBITDAR, which reflects the one-time expenses associated with the Assignment for the Benefit of Creditors, of approximately $1,650,000.
The Company has a significant portfolio of intellectual property including a flagship iconic brand that is one of America’s oldest cough drop brands and is widely recognized throughout the nation and across generations of consumers.
The Company’s customers include some of the country’s most prestigious food and drug retailers. Their versatile packaging capabilities include roll wrapping, twist wrapping, tin packing, bottling, flow wrapping, stick packing, pouching and boxing. Private label and contract packaging sales comprise approximately 80% of total revenue with proprietary brand product sales representing the remaining revenue.
The Company owns and occupies two buildings in Chicago located approximately 3 miles from Midway airport. The first is a 100,000 square foot manufacturing plant with a second story over a portion. The Company’s corporate office is located in the manufacturing facility. The second, located across the street from the plant, is a 17,000 square foot warehouse/distribution center.
Assets for sale as of December 31, 2009:
Interested parties may request additional information and additional due diligence information concerning the sale process by contacting:
John C. Wheeler (Assignee) and/or Mark F. Thomann
Development Specialists, Inc., Suite 2300, 70 West Madison St., Chicago, IL 60602. Office: 312-263-4141