Manufacturing Case Study - Hermitage Equity Partners : Business Acquisitions and Value Creation

Case Studies

Industrial Manufacturing Case Study: Largest manufacturer in the United States of electric boilers for commercial and industrial applications.

    Turn-Around Initiatives and Value Creating Activities

  • Recruited New Management to Turn Around Impaired Investment: More...
  • Strengthened Interdepartmental Communication: More...
  • Identified and Promoted Star Performers: More...
  • Streamlined Material Flow: More...
  • Improved Job Scheduling: More...
  • Proactively Managed Warranty Claims: More...
  • Overhauled Design of Troubled Product Line: More...
  • Financial Results: In the prior one and a half years before Mr. Brereton joined in June 2008, the company’s cumulative EBITDA margin had been (6.5%). Upon joining the company, Mr. Brereton improved the company’s EBITDA margin from (6.5%) in the prior one and a half years to 4.8% in the second half of 2008. During the full-year 2009, Mr. Brereton managed to produce a 13.7% EBITDA margin while sales were down 30.5% from the impact of the Great Recession on a capital equipment, project-based business. 2010 continued an improving trend, as the company’s EBITDA margin improved to 16.7% for the twelve months through June, the highest EBITDA margin over a twelve month period in the company’s history. Despite the deteriorating economic environment in late 2008 and early 2009, Mr. Brereton was able to operate the company on a self-sufficient basis without any capital infusions required through his entire tenure with the company.
  • Investment Results: More...

Food Processing Case Study: Meat processing holding company consisting of two entities, a poultry further processing company and a pork sausage processing company. More...