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Fort Lauderdale, Fla.-based investment banking firm Farlie Turner & Co. has announced that its Special Situations Group has completed the going concern sale of DM Industries, Ltd. (“DMI”) under Section 363 of the Bankruptcy Code. DMI is a leading manufacturer of high-quality therapeutic bath systems, hot tubs, swim spas and luxury whirlpool tubs marketed worldwide. DMI was purchased by Maax Spa Industries Corp. (“Maax”), a portfolio company of Brookfield Asset Management which has approximately C$80 billion of assets under management.
According to Steven Zuckerman, Head of Farlie Turner's Special Situations Group, which specializes in representing underperforming and financially distressed companies, this was a very challenging transaction. “Despite being one of the leading manufacturers in the spa and bath industry, DMI had experienced significant erosion in sales due to the slowing economy and needed to find a partner that could shepherd it through the down cycle. Given the difficult economic environment, we were pleased to be able to execute a transaction with Maax, who will be able to capitalize on DMI’s well known brands in the industry.”
Alan Goldberg, DMI’s Chief Restructuring Officer, noted that “this deal was extremely difficult because the economy was just one of the challenges we faced. The company had a strained relationship with its lender and key vendors, and limited cash flow. It took an extraordinary team effort by DMI’s advisors to facilitate a successful transaction.”
The Special Situations Group complements Farlie Turner & Co.'s healthy investment banking practice, which focuses on serving growth-oriented middle market companies with enterprise values typically between $30 and $300 million. Farlie, Turner & Co., LLC, and its affiliate Bayshore Partners, LLC, a broker-dealer registered with the FINRA, provide merger and acquisition, private placement, and financial advisory services. Visit www.farlieturner.com for more information.