Werner Holding Company Inc. announced April 26 that the United States Bankruptcy Court for the District of Delaware has entered an order approving the sale of substantially all of Werner's assets to a group including Black Diamond Capital Management, Brencourt Advisors LLC, Levine Leichtman Capital Partners III L.P., Milk Street Investors LLC, Schultze Asset Management LLC and the TCW Group Inc.
Werner is the world's leading manufacturer and distributor of ladders, climbing equipment and ladder accessories. It is headquartered in
The transaction is expected to close in May. The transaction, valued at approximately $270 million, represents a higher price than the Stalking Horse bid selected by the company in March. The transaction includes a comprehensive agreement among each of the creditor constituencies, the repayment of the company's first lien debt, a cash distribution to second lien holders, the payment of significant trade claims in the normal course and the potential for unsecured creditors to realize incremental value.
The company will continue to operate in the normal course of business, and ongoing customers, vendors and employees will be unaffected. The sale transaction will substantially reduce Werner's debt and overall leverage as more than $300 million of liabilities will be extinguished through this transaction. Werner will benefit from an improved capital structure and liquidity that will allow the company to serve its customers and meet all of its future obligations.
James J. Loughlin Jr., Werner's interim chief executive officer, said, "We are very pleased the court has approved the sale order. This is a good result for Werner and its employees and positions the company for future success. We remain committed to serving our customers and teaming with our suppliers and other business partners to remain the leader in each of our product segments."