Microwave Communications

Issue Faced. A division of a laminates group, built a new facilitypreparing for a new market that never developed. The other product lines were unable to absorb the increased overhead. Weak in distribution, volume,branding, international markets and Japanese corporate "relationships".

Industry. Very hi-frequency electronic materials for microwave markets

Location. Delaware and California

Size Of Company. One billion with a fifty million dollar division

Who Brought In The Team/Individual. Public relations firm referral

Goal Of Assignment. Consider consolidating with other division operations in the group or grow the volume to meet return on capital employed requirements.

Actions Taken. Complete a market analysis of market drivers, strengths, weaknesses, opportunities and threats. Pricing analysis done to ensure that product mix met the volume mix and that pricing was set to enhance efficiency. Determined that a market consolidation was necessary and probable. Indications that a large player did not have synergy with their other lines. Their multi-product plant was at capacity. The plan was initiated to acquire our largest competitor.

Results. The approach, present them with a very fair price, personnel offers, protection for their long standing relations with customers and most importantly, we would move the internal operations out of their plant within three months from closing. Acquisition completed and plants consolidated. Inherited a significant international distribution network, at no cost, which had operated under the sellers' corporate name. Delaware operation generated positive return.

Assignment Duration. Two and a half years

Resources Utilized. Outside market research and internal mfg. for move and integration.

Testimonial. The internal corporate council stated to the directors that this resulted in the most profitable, as a percent to sales, well integrated acquisition in the corporation. The first years' annualized results were an eighteen percent EBITDA and twenty five percent return on investment.

Submitted By. Arthur Williams