Company
Astrex Electronics is a value-added distributor of electronic connectors focused on military, aerospace, medical and industrial end markets.
Situation
Rockwood acquired the assets of Astrex in September 2008 from a parent company that was in financial distress. Rockwood completed its due diligence, raised outside debt financing and closed the transaction in 35 days after signing a letter of intent, which was imperative given the deteriorating financial position of the parent company and its impact on Astrex’s operations.
Rockwood’s Role
- Stood up Astrex as an independent company
- Recruited CFO and COO to complement a strong CEO
- Recruited a value-added Board of Directors that includes the former President of Newark Electronics, the former President of a $300 million division of Arrow Electronics and the former President of Tri-Star Electronics
- Restored Astrex’s strained relations with its key suppliers by immediately bringing all payables current at close
- Invested in stocking packages for two new suppliers and a new product line from an existing supplier
- Invested in an e-commerce sales and marketing initiative
- Supported Astrex’s management team as they implemented operational and sales improvement initiatives, consolidating facilities, upgrading IT systems, restructuring internal and external sales, and improving working capital usage
Outcome
- Grew revenues from $26 million in 2008 to nearly $40 million in 2014P and significantly grew EBITDA to a projected $4mm for 2014
- Sold the business in June 2014 to TTI – a division of Berkshire Hathaway
