Kendall International
Kendall was a leading manufacturer and marketer of disposable medical supplies, home health care products and adhesive products and tapes, with 1991 revenues of $731 million. It was a fundamentally sound business that had experienced some unforeseen operating problems and was struggling under excessive debt, the result of a highly priced leveraged buyout. Mr. Littlejohn and his partners made their investment simultaneously with a pre-packaged Chapter XI filing, thereby reducing the debt. The restructured company, under the leadership of a new management team, refocused marketing and product initiatives, exited unprofitable product lines, streamlined plant operations and reduced overhead. As a result, EBITDA margins grew significantly from 13% to almost 22%, while revenues expanded steadily. The company completed a secondary IPO in 1993 and ultimately merged with Tyco International two and a half years after the initial investment.