| Home > Portfolio > Case Studies > CII Technologies, Inc. |
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Fairview, North Carolina
Leading manufacturer of high performance relays and solenoids
Investment Date: September 1997
Exit Date: January 2002
www.ciitech.com |
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In 1997, CII Technologies was hoping for a partner with the capital and other resources to help the company continue to achieve its well-planned growth objectives. Acquisitions were needed to diversify from what had been a focus primarily on military and aerospace markets into a broader commercial industrial markets.
With assistance from CHS, CII completed six acquisitions: four tuck-ins and two major add-ons. The assimilation of low-performing competitors as well as the two major acquisitions significantly increased the company’s sales volume and doubled their served markets.
Fortunately, as the recession began in 2001, the company was in a relatively strong position. Product and market diversification, along with low cost production, resulted in stable earnings and market share growth. Through common distributors, the CEO learned of a strategic buyer’s interest in purchasing the company and alerted CHS. CHS conducted a focused sales process to gauge interest among other potential buyers. Within six months, the company was sold.
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Case Studies have been selected for illustrative purposes. The specific portfolio companies identified are not representative of all active or prior CHS Capital portfolio companies;
results may not be typical and it should not be assumed that investments in other portfolio companies will be or were as profitable. For complete listings of active and prior
portfolio companies please visit the "Portfolio" section of the website. Investments in a fund involves significant risk, including loss of the entire investment.
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