Portfolio
Companies
Fairfield Manufacturing
Lafayette, IN
Fairfield Manufacturing is the leading independent domestic manufacturer and marketer of custom gears and planetary gear systems. When the Company was purchased in August 1989, it had sales of approximately $120 million. Fairfield was a market leader, had recently completed an operational restructuring and had an excellent management team around which to consolidate a fragmented industry. In addition, there were many operational improvements to be made and a more aggressive sales strategy to be pursued.
Foodbrands America, Inc.
Oklahoma City, OK
Foodbrands was formed in 1988 by the merger of Doskocil’s pizza topping business and Wilson Foods Corporation but ended up in bankruptcy in 1991. When the Company emerged from bankruptcy, it needed a further refinancing in order to achieve operational flexibility. The investment, in January 1993, permitted Foodbrands to exit its retail and slaughter businesses and attract new management focused on repositioning the Company to be a higher margin specialty producer. Foodbrands implemented an acquisition program which expanded the Company's product offerings as well as improved operating margins at its existing facilities.
Freedom Chemical
Philadelphia, PA
Freedom Chemical was established in May 1992 to acquire underperforming businesses in the highly fragmented specialty chemical industry in partnership with a highly regarded management team. By the completion of the acquisition program, Freedom had become a $300 million company which manufactured specialty and fine products sold into several market segments for use in food and beverage products, textiles, household and industrial products and many other diverse applications. In addition, Freedom improved margins by rationalizing its facilities and focusing the operational strategy.
Golding Industries
New York, NY
Golding Industries had been a family-owned manufacturer of printed mattress ticking and contract textile printer which, despite its market leadership, had never achieved a proper level of operational efficiency or sales management. The investment opportunity was to eliminate overhead, consolidate duplicative non-manufacturing functions, and streamline the manufacturing process to improve working capital management. A new management team was recruited to implement a complete re-positioning of the Company. By focusing on profitable business, Golding’s sales were reduced from $66 million in 1989 to approximately $50 million in 1994, but margins improved significantly.
Guide Corporation
Anderson, IN
Guide Corporation is the largest manufacturer of automotive forward and signal lamps in North America with sales of $600 million. Prior to Palladium’s investment, the company comprised the operating assets of the exterior lighting systems business of Delphi Automotive Systems Group, a wholly owned unit of General Motors Corporation. Guide is a Tier 1 supplier to GM’s car and truck platforms and employs approximately 3,000 people in the engineering and production of signal and forward lighting products.
Haden International Group
Auburn Hills, MI
Haden International Group, is a world leader in providing high performance paint finishing systems for the automotive, aerospace, general industrial and chemical manufacturing industries. Based in Auburn Hills, Michigan, Haden is a global organization with offices in the major automotive and industrial centers of the world. Until 1999, when Haden was acquired in a management buyout, it had been a subsidiary of Haden MacLellan plc, a 185-year old designer and manufacturer of steel fabrications and industrial air supply systems based in the U.K.
Hibernia Communications, LLC
New York, NY
Hibernia Communications was formed in 1997 in conjunction with operating executives Michael Craven and James Thompson to acquire under-managed or poorly capitalized AM radio stations at a discount to asset or “stick” value and convert the formats to Radio Disney, a unique format developed by Walt Disney/ABC Radio Networks designed to target children ages 6 to 12.
Kendall International, Inc.
Mansfield, MA
Kendall is a leading worldwide manufacturer and distributor of disposable medical products sold to hospitals and alternative health care facilities, pharmacies and other retail outlets. Originally purchased by Clayton Dubilier & Rice in July 1992, an investor group led a recapitalization of the Company. A proven management team was recruited which implemented a significant turnaround strategy involving aggressive marketing, disciplined cost containment and improved pricing.
Liberty Broadcasting, Inc.
Philadelphia, PA
Liberty Broadcasting was formed in March 1993 in partnership with two senior industry executives, Michael Craven and James Thompson, to acquire underperforming radio stations, principally in the top 50 markets, and to capitalize on the regulatory changes and rapid consolidation occurring in the industry. Through a series of acquisitions, the Company was grown from a single station into a 19-station broadcasting group along the Northeast/Mid-Atlantic corridor. Liberty pursued a strategy of improving station operations by strengthening music formats, aggressively directing sales and marketing efforts, and introducing new revenue sources.
NexPak Corporation
Canton, OH
NexPak Corporation manufacturers packaging for CD, DVD, VHS, game and software media applications. The company was formed in January 1999 with the acquisition of Atlanta Precision Molding Co., LLC and its sister company, Europe Precision Molding B.V. and in August 1999 was expanded with the acquisitions of Joyce Molding Corporation and Alpha Enterprises, Inc.
OrNda HealthCorp
Nashville, TN
Republic Health Corporation (later renamed OrNda Healthcorp) emerged from its prepackaged bankruptcy undercapitalized. As part of a recapitalization to avoid a further restructuring, a transaction was structured which significantly reduced indebtedness. OrNda operated 14 hospitals with approximately $500 million in sales. A new management team sold off underperforming assets, improved operating margins and implemented an aggressive acquisition program taking advantage of opportunities to consolidate the hospital management industry.
Phibro Animal Health Corporation
Fairfield, NJ
Phibro Animal Health is a global medicated feed additive company formed by the acquisition of Pfizer Animal Health's feed additive business in December 2000. Phibro develops, manufactures, markets and sells medicated feed additives through regional offices located in Argentina, Australia, Belgium, Brazil, Canada, Chile, China, Costa Rica, Hong Kong, Japan, Malaysia, Mexico, South Africa, United States and Venezuela.
Rexene Corporation
Dallas, TX
Rexene manufactured and marketed thermoplastic and petro-chemical products, including polyethylene, polypropylene and styrene resins. At the time, the Company had relatively few strategic options because it was owned by its management, which was seeking to retire and its antiquated technology was unattractive to a strategic buyer. A strategy was implemented to deploy Rexene's facilities to the production of more differentiated products which, because these were more customized, could insulate the business from the commodity markets.
Sterling, Inc/AEC, Inc.
Chicago, IL
Sterling/AEC manufactured auxiliary equipment for the plastics processing industry. Though the companies had strong market positions and brand names, they were visibly inefficient as a result of weak management and represented excellent opportunities for improvement. Following the acquisition, the Companies rebuilt the management team, installed updated inventory management and quality control systems, rationalized the workforce and the facilities, and established a new product line.
The Hilsinger Company
Plainville, MA
Hilsinger is a leading provider of accessory products and supplies to the eyewear and eye care markets in the U.S. and U.K. The Company sells eyewear replacement parts such as nose pads and screws; optical-related consumer products such as lens cleaning and care products; eyewear such as sun clips, sports goggles, and safety glasses; and eyewear dispensing products. In addition, through its Wilson Ophthalmic, Inc. subsidiary, the Company distributes manufacturer-branded and generic ophthalmic pharmaceuticals, examination products, and surgical products in the U.S.
The Polymer Corporation
Reading, PA
At the time of the transaction in August 1986, Polymer had sales of approximately $100 million and was a leading multinational manufacturer and marketer of engineered plastic stock shapes, custom components, molding resins and thermoplastic hoses. Polymer was perceived to be an attractive investment due to its dominant market position and identifiable operating inefficiencies. Following the acquisition, the Company recruited new senior management, consolidated operations, streamlined and redeployed the workforce, installed inventory management and quality control systems, and made a strategic acquisition.