Hines Horticulture purchased by creditor
Black Diamond Capital Management, a private equity and hedge fund based in Illinois, has become the new owner of Hines Horticulture. The commercial grower was purchased by its largest unsecured creditor in a deal approved by a federal bankruptcy court in Delaware.
Hines filed a voluntary petition for Chapter 11 bankruptcy protection on Aug. 20, citing a rise in production costs, pricing pressure from large customers and weather-related factors. The Irvine, Calif.-based company is the industry’s largest producer of ornamental shrubs and container-grown plants in the country, operating seven nurseries in four states. It sells to more than 6,670 retail outlets. Its customers included Home Depot, Lowe’s, Wal-Mart and many independent garden centers.
Black Diamond Capital Management, which was Hines' largest unsecured creditor, held a majority of its $175 million in senior subordinated notes. In earlier court papers, the fund offered $58 million in cash for the company.