We invest in profitable companies with strong niche positions within their industries. We are particularly interested in privately-owned companies in need of an ownership transition and divisions of larger companies that no longer fit their parent company's strategic direction.
Case Study - Dezurik
Company
Prior to our acquisition, DeZURIK was a division of a Fortune 500 company which manufactured highly-engineered flow control valves and related products for municipal water and wastewater systems.
Situation
Rockwood partnered with Granite Equity Partners in 2004 to acquire DeZURIK from it's parent. At the time, this $60 million division was acquired without a senior management team.
Rockwood's Role
- Recruited former DeZURIK senior leadership back to the company, which collectively owned more than 10% of the company
- Recruited a value-added Board of Directors that included the former CEO of DeZURIK prior to its sale to the Fortune 500 company and the retired President of a nearby privately owned manufacturing company
- Supported DeZURIK’s management team as they drove through operational improvement initiatives, implementing lean manufacturing, upgrading IT systems, improving sourcing of castings, improving working capital usage, and increasing margins
- Supported DeZURIK’s management team has they improved and expanded relationships with the company’s sales-rep network including the formation of a Sales-Rep Advisory Board
- Acquired a $35 million complementary product line of industrial and process valves in 2009
Outcome
- As a result of these changes and investments, DeZURIK has grown sales in excess of 200 percent and EBITDA in excess of 400 percent in 6 years.
- In 2010 Rockwood sold a portion of its ownership in DeZURIK as part of a recapitalization generating a significant return to Rockwood while retaining the preponderance of its pre-recapitalization ownership in the company.
- Rockwood will continue to support management's growth plan through both internal sale initiatives and targeted acquisitions.