Rigid terms or restrictive covenants are common challenges businesses face with traditional bank lending. This was the case for Hayes Performance Systems, a sponsor-backed business seeking more liquidity.
For decades, Hayes Performance Systems has been at the forefront of dry disc brake system technology for power sport vehicles, heavy equipment, and other industrial applications. In addition, Hayes Performance Systems has assembled and developed a premium family of Bicycle components, offering products under renowned brands Hayes, Manitou, Reynolds, SUNringlé, and ProTaper. Headquartered in Mequon, Wisconsin, with operations in Germany, Taiwan, and China, the company serves the global market with its high-performance products.
The leadership of Hayes Performance Systems approached Gibraltar Business Capital to increase liquidity, optimize the supply chain, fund a vertical integration acquisition, support ongoing working capital, and pay off bank debt.
GBC structured a $12MM asset-based credit facility to maximize the achievement of short—and long-term growth objectives and operational needs. The transaction was secured by accounts receivable, inventory, and equipment, including advances against domestic and foreign accounts receivable.
Building Trust Through Personal Commitment
In exploring financing partnerships, the company reviewed multiple options. GBC’s industry relationships, combined with the accessibility of its decision-makers, reassured the company’s leadership that the deal would close swiftly and successfully.
GBC also had a track record of successfully managing complex transactions through prior partnerships with the company’s financial advisory group.
“Gibraltar’s leadership made it clear they understood our business and its unique, fluctuating needs across our diverse business lines,” said Phil Malliet, CEO of Hayes Performance Systems. “Their willingness and ability to craft a tailored financing solution that addressed our specific needs gave us the financial flexibility to pursue our strategic objectives and enhance our market position.”
Despite stiff competition in lender selection, GBC’s industry relationships and reputation as a reliable partner ultimately led to its selection.
Another key factor was GBC’s commitment to building relationships. Scott Winicour, CEO of Gibraltar Business Capital, visited Hayes Performance Systems, demonstrating the value GBC places on face-to-face interactions and senior-level engagement.
“In an industry where relationships matter deeply, we pride ourselves on working with partners to align financing solutions with each client’s needs,” said Scott Winicour, CEO of Gibraltar Business Capital. “Our experience in handling intricate transactions allows us to provide reliable and flexible capital solutions to support the goals of multiple parties.”
