How Hilco Performance Solutions’ Financial Modeling and Pre-Deal Diligence Helped Drive a Successful Transaction for a Truck Leasing and Sales Business
19th Capital Group was a provider of asset financing and fleet management solutions for operators of Class 8 fleets across North America. The company operated as a wholly owned subsidiary of Element Fleet Management, a global fleet management company. 19th Capital’s success was dependent on maintaining a high percentage of its portfolio on active leases.
In 2019, an over-supply of Class 8 trucks flooded the market resulting in a significant downturn in the freight industry. 19th Capital’s active lease percentage dropped drastically, and profitability plummeted. The issue was magnified by the fact that the company had been bought and sold many times in recent years. Its legacy owners included Celedon and Quality Companies. These rapid management changes left 19th Capital without strategic direction and efficient processes.
After exhausting a sale process that drove in no qualified bids, the company notified employees that it would begin to shut down in late March of 2020, laying off the remaining 200+ employees. A Hilco Global representative was made aware of the pending business closure which prompted an evaluation to purchase the assets.