Success Story
Nippon Sharyo
Overview
Whether you’re downsizing, consolidating operations or closing up shop, you have a lot on the line. From emotional to financial pressures to tough expectations and critical timing. This is a moment when you need to have complete confidence that you can get the absolute most for your assets, and know you’re working with a partner who’s willing to go above and beyond to protect your interests.
Japanese manufacturing company Nippon Sharyo had invested $100M+ into a two-building railcar factory in the USA. Due to unforeseen external challenges, the company decided to shut down operations and sell to a third party. Cultural differences required a different approach, and learning to adapt to their business practices and customs. The plan was to sell the real estate and machinery together as a whole package when CIA was awarded the project, but eventually the decision was made to sell them separately. A two-day auction featured State-of-the-Art Fabricating and Welding Machinery, Finishing, Assembly, and Material Handling. The real estate portion featured a two-building corporate campus comprised of 810,555 sq. ft. and situated on approximately 57 acres.
Process At a Glance
3.1.18
Introduction
Mutual contact invites us to bid on a private event. Visit the site to establish machinery values. General public is not aware of the closure.
3.8.18
Give Board Room presentation in Chicago to (10+) executives
4.1.18
PROJECT AWARDED
- Project is awarded to Avison Young (Real Estate) & CIA (Equipment)
- Intent is to sell the real estate and equipment together via private invitation
5.1.18
QUIET MARKETING PERIOD
- Quiet Marketing Period: AY & CIA Reach out to similar companies and perform onsite tours to gauge interest
- Establish an online virtual tour for anyone who cannot make it in person
8.1.18
Invites now open to the Public to make an offer on package of machinery & real estate.
Turn-Key Operation Available Now – Nippon Sharyo has engaged Cincinnati Industrial Auctioneers to sell the Rochelle, Illinois complex and equipment in a turn-key fashion. This once in a lifetime offering provides a unique opportunity for a railcar company to move in and quickly begin production using the existing equipment and infrastructure.
8.7.18
News stations get wind of closure
12.1.18
SELECT TOURS AND BID ACTIVITY
- (20+) Tour Given to Suitable purchasers of package RE & M&E
- (5) Submit Bid
4.1.19
After 1 year of entertaining bids for package only, the decision was made to separate the machinery from the real estate
5.1.19
CIA Begins Setup
6 CIA Team members for (5) weeks
6.17.18
Inspection Day(s)
June 17 & 18
6.19.18
Auction Day(s)
June 19 & 20 – $7.25M in sales, Highest Sold Item: $780,000, 75% Collected in 24 HRS
9.30.19
All assets removed
1.1.22
Real Estate sold
Outcome
What began as a highly-sensitive situation turned into a highly-successful two-day auction with 75% collected within the first 24 hours. The auction featured 2,000 lots of industrial machinery and drew in 1,200 bidders from 15 countries and 47 states. The sales total reached $7.25M with the highest sold item at $780,000.
As you know, Nippon Sharyo selected Cincinnati Industrial Auctioneers from a field of many competitors to liquidate the machinery and equipment from our shuttered Rochelle, Illinois facility. From the beginning, you and CIA’s personnel impressed us with their honest, up-front approach. CIA presented a liquidation strategy that let us know they would be a reliable partner in achieving our goals. Nippon wanted to not only maximize the return from the sale of the equipment, but to do so in a manner that reflected our core business principals. We found that partner in CIA.
– Erwin Hartmann
VP Manufacturing