Obtaining Maximum Value at Auction

Obtaining Maximum Value at Auction

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CHALLENGE

Exel, a $4 Billion dollar a year worldwide logistics and supply chain corporation decided to cease operations at its Power Packaging facility, one of the largest hot fill beverage facilities on the east coast. Exel needed to maximize revenues for the equipment assets AND minimize its closing charges to the landlord. According to the lease, the landlord would institute a hefty daily charge for each day the 350,000 square foot facility was occupied beyond the occupancy deadline. Conversely, a significant incentive was available if the building would be returned early.

The removal obligation included returning the facility back to a 100% cleaned building including demolition of multiple filling rooms, mezzanines, refrigerated storage areas, all equipment specific electrical wiring, a 250,000 sq.ft fully racked storage warehouse as well as (4) complete beverage packaging lines.

SOLUTION

Harry Davis & Company was selected to conduct an auction campaign and on a parallel track, facilitate the demolition procedures in order to meet the accelerated timeline. In this case, TIME = MONEY! Harry Davis & Company’s experience as the beverage industry’s most experienced auctioneer was heavily relied upon and a timeline for action was implemented.

SUCCESS

The sale was most successful to all involved as 420 registered bidders participated on-site and on-line from throughout the world. Because of the great interest in the auction sale, prices were strong and all equipment was successfully sold. Additionally, Harry Davis & Company completed the removal ahead of schedule resulting in the early return of the facility to the landlord.