OUR BUSINESS

Situation:

The company was dependent on a Taiwanese supplier, experiencing margin compression, lacked sufficient control over production, supply chain.

Actions:

American Capital helped the company:

• Recruit a PRC-based management team
• Build a greenfield plant near Shanghai
• Successfully transition supply chain from Taiwanese export firm to company-owned production facilities

Situation:

Heightened demand in Asia prompted US-based DelStar to build a greenfield plant in China to serve local markets in China, Korea and Japan. Approximately 20% of production is now in China, 90% of which is sold into local markets.

Actions:

American Capital helped management grow the company’s presence in China, supporting management in:

• Recruiting local talent
• Building plant in PRC
• Developing local sales, marketing and distribution

Situation:

In mid-1990s, company’s founder built a plant in Guangdong province to produce automotive water pumps for sale into the US aftermarket.

Actions:

Under American Capital ownership, company extended its marketing and distribution to US automotive OEMs, leveraging its industry-leading cost position

Situation:

Under prior owner, company manufactured all product in France and was barely breaking even at the EBITDA line.

Actions:

• Prior owner replaced management
• New managers developed a lean, outsourced business model taking advantage of Asian production facilities while shuttering French production and absorbing attendant social costs
• Within 24 months of these changes, company generated €14 million in EBITDA and was sold for €200 million (European Capital helped finance the acquisition)