Case Study
Company Overview
Manac, Inc. is a leading manufacturer of flatbed trailers, low-bed trailers, forestry trailers, chip trailers, dump trailers and dry-vans with headquarters in St Georges, Quebec. Manac is Canada’s largest semitrailer manufacturer and market share leader in most of its targeted segments.
Partnership Overview
Acquisition Dynamic / AIP Differentiation
- AIP was approached directly by Manac’s family owners and majority shareholders who were looking for a strategic partner to add value to their operations with Lean manufacturing principles and strategic procurement initiatives
Investment Rationale
- Favorable End Market Growth
- Leading Canadian Market Participant With a Premier Brand, a Strong Engineering Focus, a Large Installed Base, a Diverse Distribution network and Efficient and Flexible Plants
- Attractive Design and Assembly Business Model with Low CapEx and High Return on Capital
- Opportunity for Significant EBITDA Improvement using AIP Operating Disciplines –comprehensive Lean implementation, strategic procurement savings, increased market share within targeted specialty segments, and aftermarket sales
Value Creation Accomplishments
- Reduced direct labor in US Plants by 25-40% through the exercising of Lean manufacturing principles: implemented single piece flow manufacturing, consolidated production shifts, and decreased unit labor costs for an aggregate direct savings of C$4 million.
- De-bottlenecked, Manac USA production, to increase capacity by 157% and 50% in two Missouri facilities and increased production to meet average demand across cycle with a focus on new product introductions in the U.S.
- Leveraged Procurement across the supplier base, and kick-started joint sourcing projects including tires, aluminum and paint for an aggregate savings of C$4 million
- Optimized aftermarket business with value pricing, targeted dealers and U.S. service centers
- Integrated a corporate carve-out as an add-on acquisition that increased market share and introduced complementary products
Exit
Sold to a consortium of financial buyers and certain existing shareholders in August 2015.
Company Highlights
THE AIP TEAM
STRATEGY
THE AIP DIFFERENCE
CONTACT USAcquisition Year
2012
Exit Year
2015
Fund
AIPCF IV
Disclaimer: Please note, the above case studies do not represent all of the types of investments AIP, LLC has made or the outcomes it has achieved during its lifetime. Each investor must consider whether private equity investments are suitable for their specific goals. Past performance is not indicative of future results. For a comprehensive list of all investments along with Portfolio Company information, please click: www.americanindustrial.com/portfolio