| 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 |
©2008 – 2010 Stonebridge Partners. All Rights Reserved.
| 914-682-2700
