Company: GT Exhaust
Engagement: Executive-led Search
Headquarters: Lincoln, NE
Type of Business: Manufacturer and leading brand of stationary diesel engine silencers required in all stationary diesel engines
Investment Date: October, 2007
Exit Date: September, 2012
An industry executive and his business advisor identified the opportunity to acquire GT Exhaust, a long-time private company whose owners were looking to retire. The executive needed equity and debt capital to complete the transaction, but he was also looking for the “right” partner. He ultimately selected CID Capital as his partner in the transaction. After CID successfully led transaction diligence, we jointly purchased GT Exhaust from the Company’s owners and the executive assumed the role of CEO.
CID helped GT Exhaust develop a detailed growth strategy, emphasizing margin improvements through product redesign and operational enhancements through investments in operations and systems. We helped build the management team and board of directors. We also handled capital raising for GT, putting in place a prudent capital structure at the Company.
GT Exhaust became attractive to larger operators based on the transformation that the Company made from a lifestyle-managed business to a professionally managed organization. CID managed a successful sale process for the Company to a strategic buyer in September, 2012.
*Readers should not assume that investments made in the future will be profitable or will equal the performance of the investment discussed in the case study. Upon request, the Firm will provide a list of all investments made by the Firm.
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