Investment date : February 2008
Sold to management in 2015
Designs, manufactures and distributes a full suite of high-end bathroom fixtures in Canada and the U.S., with a primary focus on the renovation market.
Business description
- Design, manufacture and distribute a full suite of high-end bathroom fixtures in Canada and the U.S., with a primary focus on the renovation market
- Products sold through growing list of boutique stores as well as through general contractors
Investment rationale
- Significant operating leverage to be achieved from existing manufacturing facility which is currently running at 50% of capacity
- Target of high-end consumers combined with focus on the renovation market somewhat isolates the company from the housing and credit market woes
- Strong brand name in Quebec, with a growing presence in the rest of Canada and the U.S.
- Represents a strong platform to consolidate independent bathroom fixture manufacturers
- Goal is to consolidate market to position the company for the next strong economic cycle
Value creation opportunities
- Recruited president & CEO with a proven track record as a senior executive at the company’s largest Canadian competitor to drive domestic and international growth
- Market consolidation by acquiring direct competitors as well as those companies with complementary product offerings
- Penetration of $2 billion U.S. market is primary objective to be achieved through expansion of U.S. sales effort led by CEO’s extensive U.S. network
Website : http://www.produitsneptune.com/en/