| Home > Portfolio > Case Studies > Utiliserve, Inc. |
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Corinth, Texas
Distributor of electrical power equipment and supplies to the utility industry
Investment Date: August 1997
Exit Date: August 2002 |
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When CHS acquired majority ownership of Utiliserve in 1997, the $60 million company had already established itself as the eighth largest value-added distributor of electrical transmission and distribution products and services for the U.S. utility industry.
Utiliserve distinguished itself by building strong and loyal relationships with customers, which the company planned to leverage into alliance contracts over time. It also retained positive relationships with suppliers. This translated into more robust product and service offerings and better pricing than competitors.
CHS’s substantial experience with distribution companies helped Utiliserve move forward with its growth strategy. We assisted in identifying, negotiating and closing five add-on acquisitions to support the company’s efforts to lead their industry in consolidation. We also brought new management talent to complement the existing team in areas such as inventory control and purchasing in order to enhance the company’s infrastructure and accommodate its expected expansion.
Utiliserve built a network of 30 branches in 15 states throughout the central and northeast regions of the country. The company had grown substantially with an estimated $229 million in sales in 2002, making it the second largest distributor in its industry.
CHS began the process of exiting this investment in early 2002 and sold to a strategic acquirer. |
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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