SencorpWhite Announces MSI Automate as Stalking Horse Bidder in Chapter 11 Sale Process

SencorpWhite Secures MSI Automate as Stalking Horse Bidder in Chapter 11 Sale Process

Hyannis, Massachusetts, February 26, 2025 – SencorpWhite Inc. has made a significant announcement regarding its ongoing Chapter 11 bankruptcy proceedings. The Northern District Bankruptcy Court of California has officially approved MSI Automate, a portfolio company under Grays Peak Capital, to act as the stalking horse bidder for the acquisition of SencorpWhite's business operations. This move comes as a crucial part of the company’s recovery strategy as it navigates through its financial restructuring process.

The purchase agreement stipulates a total consideration of approximately $40 million, which encompasses $13.5 million in cash along with the assumption of all customer-related responsibilities, lease liabilities, and certain prepetition trade accounts payable. This plan not only seeks to stabilize SencorpWhite’s operations but also aims to reassure its employees, customers, and partners about the company's ongoing viability.

The Significance of a Stalking Horse Bidder

The introduction of MSI Automate as the stalking horse bidder is a strategic decision that establishes a baseline for potential competing bids. Such bids serve as a framework that can encourage higher offers from other interested buyers who may wish to acquire SencorpWhite's assets. The qualified bid deadline is currently set for April 21, with an auction scheduled around April 30, contingent on receiving more attractive offers. This bidding process is pivotal as it will determine the future of SencorpWhite’s business operations and its standing in the market.

CEO Corey Calla expressed confidence in this approach, stating, “Designating a stalking horse bidder is essential for ensuring the long-term viability of SencorpWhite. It provides clarity and reassurance to our employees, customers, and vendor partners regarding the future of the Company.” Calla also highlighted the essential role of SencorpWhite's staff and leadership in supporting the company through this challenging period, acknowledging their impressive commitment during times of uncertainty.

Looking Ahead

Furthermore, those parties interested in the bidding process are encouraged to connect with the Company's investment banker, Gordian Group LLC, to obtain a non-disclosure agreement and gain access to pertinent confidential information regarding the transaction. With clear procedural steps outlined, SencorpWhite aims for a smooth transition into its new operational phase post-sale.

Legal assistance during this restructuring is being provided by Allen Overy Shearman Sterling LLP and financial advisement from Getzler Henrich and Associates LLC. The comprehensive involvement of these firms underscores the importance of having adept professional guidance during such complex processes.

SencorpWhite is recognized as a leading manufacturer specializing in vertical storage systems and heat-sealing equipment. The firm also offers software solutions tailored for warehousing and distribution sectors, with a mission to enhance operational efficiencies while minimizing costs. The company prides itself on delivering personalized solutions, supported by its dedicated engineering and service teams deployed across the United States.

As SencorpWhite positions itself for a fresh start through this Chapter 11 process, its strategic choices, including the selection of MSI Automate, demonstrate a calculated effort to revive its business and maintain confidence among all stakeholders involved. Such adaptive strategies illustrate the company's resolve to emerge from this phase of its history with renewed vigor and operational competence.