RathGibson Bankruptcy Unsettles PE

Davis, Avram
July 2009
Mergers & Acquisitions Report;7/20/2009, Vol. 22 Issue 29, p6
The article reports on the pre-arranged bankruptcy of tubing and pipe manufacturer RathGibson. In April 2007, the company was bought by DLJ Merchant Banking Partners at the peak of the leveraged buyout frenzy for about 440 million dollars. According to Kirk Thorne, vice president of sales and marketing, RathGibson suffered a 40% to 50% decline in demand for its core chemical product line, and a 45% to 50% drop in demand from commercial distributors.


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