CASE STUDY
Actagro
Actagro is a leading national developer, manufacturer, and distributor of environmentally friendly, organic plant nutrients with manufacturing facilities in California and Arkansas. Actagro’s products increase crops’ utilization of nutrients, help release nutrients already present in the soil, improve soil crumb and moisture retention, and maximize overall nutrient application while increasing crop quality and yields.
DEAL OVERVIEW
- Sourced opportunity from a proprietary relationship.
- Partnered with an independent sponsor and management to acquire a profitable growing business at an attractive multiple.
- Facilitated a leveraged management buyout and provided growth capital to the business.
- Formed a stock option plan to incentivize key employees.
Value-Added Involvment
- Expanded credit facilities to fund growth without diluting ownership.
- Doubled capacity and established a new geographical presence by opening a new plant.
- Established an international market for the company’s products, as well as multiple new sales strategies to penetrate these new markets.
- Strengthened and diversified the company’s distributor network.
- Strengthened management team with several new high-level hires.
- Implemented“institutional best practices” across the company’s policies, procedures, reporting, and documentation.
Progress & Impact
- Revenue growth over 220% during first year of ownership.
- EBITDA more than tripled during ownership.
- Plant capacity increased by approximately 50%.
- Sold the business to Norwest Equity Partners.
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