Profile
Philosophy
Our Advantage
Criteria
Investment Situations
Fund I
Fund II
Prior Transactions
 
 
McGregor Industries Inc.

Opportunity

McGregor was established in Canada in 1928. The company has continued to evolve its business model and practices over the decades in order to successfully deal with changing economic trends and various threats to its industry. Each challenge has been met head on by remaining focused on McGregor's key strengths - product innovation and quality, customer service and brand integrity.

Key achievements include the creation of a portfolio of internationally marketable brands and the recent establishment of a multi-country, multi-region, high quality, quick-response supply chain. This supply chain includes the integration of fully compliant international production sources with a proprietary, state-of-the-art, domestic distribution facility that is capable of efficiently handling the sophisticated order requirements of the company's highly varied customer base.

In 1986, the Company accepted a minority investment from a large Osaka-based company in order to fund corporate expansion into the United States. More than 50% of the Company's revenues now come from the American market. With changing conditions in post-bubble Japan, the investor ceased to be a strategic strength and in 2004 the Company sought a replacement partner who not only believed in management's vision for the future, but could provide support to help management execute its global plan.


Strategy

Kilmer works closely with existing owners to understand the intricacies and opportunities associated with this owner-managed company. Management's plan for a substantial restructuring of the Company's supply chain was identified as the basis for unleashing substantial wealth creation. In funding this transaction Kilmer demonstrated its willingness to consider multiple investment frameworks which led to a financing model that allowed both parties to meet their partnership objectives.