Case Study: RANDYS Worldwide
RANDYS Worldwide
National automotive aftermarket provider of highly engineered components under the Yukon, USA Standard, and Z Drivetrain brands
Investment Thesis & Background
- Opportunity to invest in a branded category leader with deep technical and product development expertise; Company had a 20 year history of brand building and sales growth in various economic environments.
- Ability to capitalize on our experience and success investing in branded automotive aftermarket businesses.
- Opportunity to execute on several organic growth initiatives, including extension of product offering and geographic expansion.
- Opportunity for margin expansion and working capital improvements.
- Known leadership team (worked for previous portfolio company: Care-Free).
- Founder planned to retire as part of the transaction.
Actions Taken During Ownership
- Achieved a $5 million or 22% inventory reduction while implementing a new approach to supply chain that has reduced lead times, lowered or eliminated minimum order quantities and provided support on new product development efforts.
- Completed several key new hires, including human resources, sales, marketing and distribution.
- Restructured the sales organization with a channel focus to pursue channel-specific growth initiatives, including outbound focused sales program to drive growth in the direct-to-installer channel where the Company’s technical expertise is most valued.
- Added marketing specialist focused on search engine optimization and social media marketing.
- Continued enhancement and major Company emphasis on the new formalized product development process to increase the pipeline of opportunities and the pace of commercialization.
- Acquired Zumbrota Bearing and Gear in April 2017, expanding the platform’s product breadth and geographic reach.
Notes
- Acquired in May 2015.