Sun & Skin Care Research

Summary

M&A Sell-Side Advisor

Cocoa, FL

Sun & Skin Care Research, LLC (“SSCR”) is an independent sun care company that manufactures, markets, and distributes sun care products under the 3 brands Bull Frog, NO-AD, and Ocean Potion. SSCR is one of the top 5 providers within its industry and sells its products through food, drug, mass, and specialty retailers throughout the United States as well as internationally.

SSCR faced two difficult years due to a series of decisions made by the prior management team focused on accelerating growth at increased costs and increased SG&A – they had oversold the channel, spent overhead and marketing dollars inefficiently, and launched a licensed premium brand that failed.

Carl Marks was engaged to help SSCR explore strategic alternatives that would support continued growth and maximize value for SSCR’s stakeholders.

Key Challenges

Tight Liquidity

Business Seasonality

Plans to Outsource Manufacturing

Over-levered Balance Sheet

Engagement Highlights

Facing liquidity constraints ahead of the new upcoming production season, SSCR sought out potential partners to outsource its manufacturing capabilities to better manage costs in addition to exploring a potential sale.
Timing was of essence, and the Carl Marks team lobbied to structure the deal as an Article 9 sale as it is cheaper, quicker, and more certain for the buyer to close than a sale in bankruptcy court. Carl Marks also worked in conjunction with management to tactfully manage SSCR’s various creditors to avoid involuntary bankruptcy.
Carl Marks ran a wide auction process, having contacted over 200 bidders, sent books out to more than 80 interested parties, and received 20 bids.
Ultimately, the assets of SSCR, including its brands, were sold to SolSkyn Personal Care LLC (“SolSkyn”) in approximately 10 weeks of initial contact. SolSkyn was the ideal candidate as the buyer was onboard with the Article 9 sale process, quick to move, did not require third-party financing to complete the deal, and has related companies that can take over manufacturing just in time for the next looming production season.

Transaction completed by Carl Marks Securities LLC

Sun & Skin Care Research

Summary

M&A Sell-Side Advisor

Key Challenges

Engagement Highlights

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