Where others saw:
A distribution company in a declining industry that was overexposed to commodity pricing
A leader in the industrial distribution market capable of leveraging its deep relationships with customers and suppliers and its strong sales channels for a wider variety of products
- Strengthened its core competencies by expanding product offerings and increasing distribution channels serviced
- Rationalized commodity market price fluctuations by taking advantage of competitive industry dynamics
- Installed a new CFO and implemented stronger financial controls
- Acquired new corporate headquarters with state of the art distribution capabilities
- Bolstered sales and marketing teams
- Added new acquisition, All-Metric, in 2006
We implemented our strategy and exited the investment to a strategic buyer for an overall return of 5.6x invested capital.
In addition, Watermill created a separate investment group to acquire and refurbish a new facility for the company which enabled a critical move from antiquated facilities in Pawtucket, RI to a more functional building in Attleboro, MA and accelerated strategic implementation. The real estate investment returned 5.5x invested capital to investors, including annual distributions of between 15-35%.