Milestone Partners saw value in our differentiated operating model and approach to the market. They shared our vision around capacity expansion and helped to refine our strategic direction, and they placed confidence in our management team, aligning interests and creating a great outcome for our team as well as their investors.Des Griffiths, CEO
Precision Partners Holding Company
Based in Windsor, ONT
Acquired December 2013
Sold August 2017
What We Saw
Niche player in large, dynamic market with differentiated manufacturing advantages; proprietary hot stamping capabilities; strong cash flow characteristics; previously undercapitalized
How We Helped
Milestone Partners edge: Targeted operating partners helped identify numerous value creation opportunities: build out hot stamping lines (light-weighting); geographic diversification (Bowling Green), investments in automation technology and tooling.
Add-on acquisition: Milestone sourced a complementary add-on that closed in 2016, doubling revenue, adding $20 million of EBITDA and diversifying the customer base. The transaction was financed almost entirely with debt capital.
Value created: Significant investments made in new capacity funded largely by company cash flow; multiple sale leasebacks helped de-lever; organic EBITDA growth of over 40% in 2016; over 140 jobs created during hold period.
Enterprise value at exit: $360 million before customary adjustments.