PUBLIC NOTICE OF 363 SALE: Elmer Buchta Trucking

COMPANY OVERVIEW

The opportunity for acquisition is Elmer Buchta, a middle market trucking firm based in Evansville, IN (www.buchta.com) (“Elmer Buchta” or the “Company”). The firm currently employs approximately 100 drivers with a mix of company drivers and owner/operators for established trucking routes in Southern Indiana, Northwest Kentucky and Eastern Illinois. Elmer Buchta travels approximately 10 million miles annually, hauling more than 4 million tons of material. The Company’s main office is based in Evansville and also leases 5 terminals to service its current customer base. The Company offers dry van, bulk transfer, pneumatic handling for dry and flowable commodities along with versatile flatbed solutions. The company also provides equipment rental. Customers can also source from the Company bulk materials of sand, rock and dirt. For drivers looking to be an owner/operator, the Company offers a lease program.

The Company was formed in 1937 by Elmer Buchta, Sr. Ownership interest has since been sold twice and is currently majority owned by a single owner through a holding company. The Company has three operating entities, Elmer Buchta Trucking, LLC (Hauling), Elmer Leasing, LLC (Leasing) and WBF, LLC (Specialized routes for fuel and plastics). The operating entities are wholly owned by a holding company, Transport Acquisitions, LLC. Transport Acquisitions is majority owned by Elena Rose, LLC.

CURRENT SITUATION

Historically, the firm has had a significant concentration of business related to hauling coal and coal-related products. By extension, the Company’s top 4 customers average approximately 70% of its revenues and one customer representing 50% of revenues. Due to an increase in competitors entering the market and offering similar services, volume declined, creating operational losses. Elmer Buchta’s level of service also suffered during this period, and it failed to address the service issues in a timely manner. The Company did not have sufficient infrastructure to handle the loss of revenues nor cut its expenses commensurately. While the Company made efforts to diversify into other materials, differentiate itself and enact operational improvements, execution took longer than expected. With liquidity continuing to decline, the Company filed for Chapter 11 Bankruptcy protection on September 8, 2023. Newpoint Advisors was appointed as Chief Restructuring Officer and approved by the Court on June 17, 2024. The following actions have been taken subsequently to improve operations:

▪ FTE Reduction & Optimization: Streamlining the workforce to align with operational demands, ensuring optimal staffing levels
▪ Maintenance Scheduling and Fleet Optimization: Implementing a structured maintenance schedule to reduce downtime and enhance
fleet reliability
▪ Overhead Cost Reduction: Identifying and eliminating unnecessary expenses to improve financial health
▪ Financial and Operational KPIs Implementation: Establishing metrics to monitor financial performance and operational efficiency
▪ Driver-Specific Scorecards: Developing individualized performance metrics for drivers to promote accountability and excellence
▪ Discontinuation of Underutilized Depot: Ceasing operations at a depot with low utilization to reallocate resources more effectively

OPPORTUNITY

There are several opportunities for potential buyers of the assets of Elmer Buchta to consider:

1) TERRITORY EXPANSION – Five leased terminals located in Chandler, IN, Linton, IN, Lamar, IN, Otwell, IN and Petersburg, IN to service the coverage area below. Maintenance is conducted at all terminals except Lamar, IN. The headquarters is in Evansville, IN.

2) FLEET ACQUISITION  – Equipment is primarily tractors and end-dump trailers, 290, with a net book value of $20MM.  The age of the fleet runs from 4-7 years old and is maintained and operated through 5 terminals.  The company has a solid safety record in line with industry standards. Current employees and owner/operators would be available to service operations and run the fleet post-transaction.

3) CONTRACTED CUSTOMER BASE  – Assumption of existing and long-standing contracts with customers in the energy (coal), construction materials (gypsum, potash) market segments. Existing infrastructure to leverage into other markets or current market segments. Ability to relocate excess capacity to other segments within the coverage area.

NOTE: The Company’s business plan and financials have not been audited by Newpoint Advisors Corporation and are subject to the potential buyer’s due diligence.  Financial data is sourced from company-prepared financials and represents the operating units of Elmer Buchta Trucking, Elmer Buchta Leasing and WBF only. The purpose of this document is to gauge potential buyer interest.

DILIGENCE PROCESS 
After review of the summary, if there is further interest, a Non-Disclosure Agreement will be provided and is required.
-Upon receipt of an executed Non-Disclosure Agreement, access to a data room will be provided to your diligence team.  The data room contains the following, but not limited to, monthly operating reports, key performance indicators, customer contracts, customer coverage area, forecast and equipment list
-Upon review, if there is further interest, a diligence call will be scheduled with company management.  During the call, potential buyer’s identities will not be disclosed and be kept confidential
– Site visits to the company and terminals can be arranged and conducted

SALE PROCESS  
The Sale Process will be conducted under Bankruptcy Court supervision and potential buyers must follow Bidding Procedures that will be posted to the data room upon acceptance by the Court.

If a bid is to be submitted and deemed eligible, each bidder must be determined to be a Qualified Bidder by the CRO.  Bids are due 5 business days prior the Sale Hearing (“Bid Deadline”).  Qualifications are the following, but not limited to:
1) A written offer to purchase assets that constitute an executed form of purchase agreement for sale that may not deviate from any applicable Stalking Horse purchase agreement
2) Provides for aggregate cash consideration that exceeds the consideration provided for the Stalking Horse purchase agreement if applicable
3) Contains no unreasonable contingencies to the validity, effectiveness and or binding nature of the bid including, but not limited to, contingencies for due diligence, inspection or financing of any kind
4) Documentation evidencing financial resources sufficient to close the transaction within 30 days of the Auction
5) Legal capacity to consummation the transaction as proposed
6) Bidder is not an Insider, sale represents an arms-length transaction
7) Statement by the Bidder if it is prepared to enter transaction upon acceptance by the Bankruptcy Court and Bid is irrevocable
8) Earnest money deposit of 10% of proposed purchase price

Upon satisfactory qualification, Qualified Bidders will attend an Auction to be held in Indianapolis, IN which is to be conducted one business day prior to the Sale Hearing.  The winning bidder must be able to close the transaction 30 days after the Sale is approved by the Court.  Draft auction procedures will be posted to the data room.  The Court Approved bidding and auction procedures will be shared with buyers once they are available.

About Newpoint Advisors Corporation. Newpoint Advisors Corporation is a North American financial advisory firm dedicated to improving troubled and financially underperforming small to lower middle market businesses. Our collaborative, process-oriented approach allows us to deliver objective solutions for a fixed fee and on a fixed timeline. Newpoint Advisors believes in a cooperative team approach: we work with our clients to educate them in ways that maximize profitability and growth. Our tool kits provide a tangible deliverable to assist in monitoring borrowers. Please contact any members of our team if you are interested in this opportunity.

Peter Bendoris 
[email protected] 
(703)328-0863