| Sold: | September 2010 |
| Price at Purchase: | $57 million |
| Price at Sale: | $260 million |
| IRR: | 31% |
| Company: | Leading manufacturer and decorator of blow molded plastic bottles and jars for the nutritional supplement, pharmaceutical, personal care, hotel amenities and niche food and beverage industries |
| Background: | Stonebridge sourced the transaction through a buy-side intermediary |
| Investment Rationale: | Opportunity to build a leader in the large, highly fragmented pharmaceutical and personal care packaging markets; capitalize on Stonebridge’s plastics and packaging industry expertise to dramatically enhance company performance |
| Issues to Watch: | Proper balance of capital investment and revenue growth; limited geographic footprint; modest personal care product offering with no decorating capability; minimal procurement resources and strategy |
| Stonebridge Value Creation: |
Built first-class management team; refocused management on generating free cash flow and debt reduction while continuing to grow the business; assisted in completing and integrating four acquisitions and three “greenfield” locations; dramatically improved purchasing function and drove the development of a unique capital investment approach |
| Results: | Created the leading company in the blow molding packaging industry with profitability, efficiency and growth statistics surpassing larger public comparables; increased sales by over 3x and grew EBITDA by approximately 4x |
| Sold: | February 2006 |
| Price at Purchase: | $159 million |
| Price at Sale: | $275 million |
| IRR: | 352% |
| Company: | Second largest provider of truss design software, engineering and design support services, truss manufacturing equipment and metal connectors (nailplates) to the U.S. pre-manufactured residential truss industry |
| Background: | Stonebridge sourced the transaction through a buy-side intermediary |
| Investment Rationale: | Outstanding business model; proprietary intellectual property created entry barriers and customer loyalty; strong management team |
| Issues to Watch: | Developing conflict within senior management team; lacked clear prioritization of strategic growth objectives |
| Stonebridge Value Creation: |
Identified and corrected disruptive organization problem; collaborated with management on “First 100 Day” strategic review of US and UK operations to prioritize efforts |
| Results: | Long-term investment objectives quickly realized; EBITDA dramatically increased; Stonebridge created favorable bidding war between the logical strategic buyers |
| Sold: | December 2003 |
| Price at Purchase: | $155 million |
| Price at Sale: | $255 million |
| IRR: | 61% |
| Company: | Leading designer and manufacturer of branded ceiling fans and related home comfort products |
| Background: | Stonebridge sourced the transaction through a buy-side intermediary |
| Investment Rationale: | Leading brand, excellent product offering; outstanding management leadership |
| Issues to Watch: | Deteriorating relationship with key Asian supplier; exclusivity conflict between two major customers |
| Stonebridge Value Creation: |
Unfavorable supplier contract renegotiated by Stonebridge, resulting in annual savings of $5 million and improved quality; Stonebridge conceptualized strategy to resolve exclusivity request by major customer |
| Results: | EBITDA dramatically increased; company positioned for exit and professionally marketed through leading investment banker to a large financial buyer |
| Sold: | September 2005 |
| Price at Purchase: | $80 million |
| Price at Sale: | $154 million |
| IRR: | 55% |
| Company: | Leading manufacturer of rigid plastic packaging specializing in injection molded jars and closures serving the personal care and food related industries |
| Background: | Stonebridge sourced the transaction through a buy-side intermediary |
| Investment Rationale: | Strong and consistent revenue and earnings growth; proprietary knowledge and expertise; considerable barriers to entry |
| Issues to Watch: | No formal sales and marketing team and declining revenue growth; autonomous senior management |
| Stonebridge Value Creation: |
Developed strong rapport and trust with senior management; enhanced sales organization capability by hiring a seasoned industry veteran |
| Results: | Revenue and profits increased progressively; sizeable reduction in debt during Stonebridge ownership; successful sale to strategic buyer |
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