UNION STAMPING & ASSEMBLY, INC.

SITUATION

  • Union Stamping & Assembly (US&A) is an Ohio corporation formed to acquire the South Charleston business of Mayflower Corporation. Supplying metal stampings and assemblies to automobile and truck manufacturers. The operations employed 460 with annual sales of approximately $100 million.
  • US&A, implemented a series of cost-cutting and revenue-enhancing steps. Those steps included head count & cost reductions, debt service relief and new business from new and current customers
  • However; even with improved operating strength the company’s hourly workers voted against entering into discussions to modify the current labor agreement to address wage and benefit costs to increased the business’s competiveness. The company’s lender refused to provide continuing support . Finally, the company was unsuccessful in obtaining commitments for meaningful new business from its largest customers, General Motors and Freightliner

RESULTS

  • Union Partners transformed the company during the first year and achieved positive EBITDA for the fiscal year
  • US&A announces primary focus to be on safety, quality and training and joined GM’s top focus program re-certified TS 16949
  • Given the unwillingness of US&A’s stakeholders to pitch- in, the company decided to liquidate the business assets and protect the shareholders capital investment.

ACTION TAKEN

  • Union Partners Teamed with management and implemented an aggressive transformation program focusing on accomplishing three priorities:
    – Near-term Liquidity Strategy to generate positive
       free cash flow
    – Sales Initiative to regain a revenue growth position
       concurrent with rolling out a new company name
       (Union Stamping & Assembly) and identity
    – Plant Operational Excellence Initiative implementing
       stamping and plant management best practices
       to ensure customer responsiveness, product conformity,
       manufacturing efficiency and competitive costs
  • Staff was evaluated, trained and redeployed to capitalize on employee strengths and eliminate redundancy