Capcium


Capcium is a Quebec-based gel cap manufacturing company known for producing gel cap medicines for the pharmaceutical and nutraceutical industries.
Despite its high-quality manufacturing capabilities, Capcium faced financial challenges entering an insolvency period and undergoing a Companies Creditor Arrangement Act (CCAA) reverse vesting process. The company had significant asset value, thus making it an attractive acquisition target. Capcium’s financial instability and insolvency posed significant risks to its operations, leaving the company with limited options. The high costs of working capital needed presented challenges for potential buyers interested in continuing operations as a going concern.
The primary objective was to acquire Capcium with the potential to restart its operations. Considering the risks and complexity of this acquisition, Hilco Global aimed to leverage its expertise in asset-backed acquisitions to evaluate and achieve the most profitable outcome.
Hilco Global joined with a local partner in Quebec with industry insights and capabilities, allowing for a more grounded approach to the acquisition. Extensive analysis and due diligence were conducted, including industry research to evaluate Capcium’s viability as an ongoing operation.
Hilco ran an extensive process to sell the company in bulk, which was ultimately unsuccessful. When the decision was made to liquidate, Hilco utilized its relationships and knowledge of the Canadian liquidation market. Partnering with a local liquidator, Hilco rapidly moved through the process, selling Capcium’s assets to recover value efficiently.
Hilco also was able to leverage its marketing capabilities to promote Capcium’s high-quality gel cap manufacturing capabilities, attracting interested buyers from across the industry. This outreach emphasized Capcium’s unique capabilities and expanded interest in the soft gel segment.
Through Hilco’s unique asset-backed acquisition strategy, Capcium was swiftly liquidated after a strong marketing campaign failed to surface a potential buyer and the working capital for a restart was deemed prohibitive. Within a six-month period, Hilco was able to achieve a profitable exit. Hilco’s deep asset knowledge and ability to pivot between ongoing concern and liquidation ensured value was achieved despite initial financial risks, highlighting Hilco’s broader capabilities in handling complex acquisitions, mitigating risks, and realizing returns even under challenging conditions.

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