Sager Creek Vegetable Company produced and marketed processed vegetable products under many brand names including Popeyes and Freshlike. In 2013, needing to reorganize and rebuild, Sager Creek filed for Chapter 11 bankruptcy protection. By 2015, the company was generating $200 Million in revenue , but continued to struggle to acheive profitability.
The primary debt holder, Sankaty (part of The Bain Capital Group), converted Sager Creek’s debt into equity. Another advisor, Jeffries, approached Hilco Receivables to partner on a deal with Del Monte to facilitate the purchase of Sager Creek swiftly in order to avoid a bankruptcy filing.
Hilco Receivables partnered with Del Monte providing $9.3 million of capital by purchasing the trade receivables of Sager Creek. This purchase by Hilco enabled Del Monte to execute the acquisition of the operating business without waiting for regulatory or bank approvals.