Background of the Case
In 2007, Peoples Company acquired a large manufacturing plant from Lexington, Inc. The new manufacturing plant was run by one of Peoples' subsidiary companies, Choice Manufacturing LLC. They built upon the acquired management team, diversified the client base and made significant investments in the plan. Choice Manufacturing LLC has consistently exceeded expectations for Peoples Company. Since acquiring the new plant from Lexington, they have been able to attract new non-Lexington types of manufacturing. They also considered taking the company public. Choice Manufacturing was the premier business until they ran into a cash flow crisis two and a half years later. They sought ...