Fishstyx
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That "growth" came from acquisitions. Bain borrowed around $300 million to acquire the companies that brought in the $200 million in "new" revenues. There was actually zero real growth. In addition to the new debt, Bain took out $100 million in cash. The company eventually drowned in the new debt and wiped out the investors, including Bain, in bankruptcy. But Bain had only invested $5 million of their own money, and had already extracted over $100 million, not a bad deal.... For Bain. But if you were one of the lenders, or one of the suckers that bought into the IPO, you lost almost everything. If you tried to do this on your own, you would be in jail for fraud....
Umm, those were net sales, not borrowing. You understand the differences between sales and borrowing...right?
http://sec.gov/Archives/edgar/data/5588/0000950130-96-002127.txtThe Company is one of the largest manufacturers and marketers of paper-based
office products (excluding computer forms and copy paper) in the $60 billion to
$70 billion North American office products industry. The Company offers a broad
product line including nationally branded and private label writing pads, file
folders, envelopes and other office products. Through its Ampad division, the
Company is among the largest and most important suppliers of pads and other
paper-based writing products, filing supplies and envelopes to many of the
largest and fastest growing office products distributors. Acquired in October
1995, the Company's Williamhouse division is the leading supplier of mill
branded, specialty and commodity envelopes to paper merchants/distributors. The
Company's strategy is to grow by focusing on the largest and fastest growing
office product distribution channels, making acquisitions, introducing new
product lines, broadening product distribution across its channels and
maintaining its position among the lowest-cost manufacturers in the industry.
As a result of this strategy, the Company's sales have grown at a compound
annual rate of approximately 34% from 1992 to 1995. For the year ended December
31, 1995, the Company had net sales of $617.2 million and income from
operations of $57.3 million on the pro forma basis described herein. See
"Unaudited Pro Forma Financial Data."
The debt accumulated up to the point of bankruptcy was done via borrowing for acquisitions, buying other companies and growing. Which caused their sales to increase but also their debt. Ironically, at the time of their bankruptcy, they claimed the big box office supply stores is what started to reduce their sales. Mainly, Staples.