Pentacon, Inc.

Pentacon was one of the largest distributors of fasteners and small parts to original equipment manufacturers in the aerospace and industrial markets. Pentacon served approximately 7,500 customers that manufacture a wide variety of products including diesel engines, locomotives, power turbines, motorcycles, telecommunications equipment, refrigeration equipment and aerospace equipment.

In late 1998, Pentacon borrowed heavily to complete two acquisitions that did not produce the expected return on investment. Given the leverage resulting from these acquisitions and the subsequent downturn in the aerospace industry, Pentacon was unable to finance its operations and service its indebtedness.

Gordian Group was engaged by the company to explore a variety of alternatives to address Pentacon's leverage and liquidity issues. These alternatives included (i) raising mezzanine financing in conjunction with a tender offer for Pentacon's senior subordinated notes, (ii) negotiating an internal restructuring with Pentacon's senior subordinated noteholders and (iii) exploring M&A alternatives with potential financial and strategic buyers.

Gordian Group, together with Pentacon's management and counsel and Pentacon's creditors, determined that a pre-negotiated Chapter 11 all-cash sale of Pentacon's assets to Anixter International Inc. (a Fortune 500 company) provided the highest and best recovery to all constituencies.