Delcorp, Inc.
Delcorp was the result of consolidating two acquisitions in the very fragmented plastics auxiliary equipment industry. Sterling Inc. was purchased first and served as a platform to acquire a significantly underperforming competitor, AEC Inc. Prior to acquisitions and consolidation, pro forma EBITDA performance was negative 3% on revenues of $105 million. The restructuring program de-leveraged AEC's balance sheet, consolidated manufacturing facilities, completely redesigned product lines, established new pricing and marketing strategies and implemented a new management information system. As a result, when the company was divested seven years later, the EBITDA margin had risen to 14% on revenues of $135 million.