Case Study

Company Overview
Micro-Poise Measurement Systems, LLC is the leading global provider of precision measurement and inspection systems and associated aftermarket parts and service for the global tire industry. Micro-Poise’s systems are used by manufacturers for process control and quality assurance to assess and correct the balance, uniformity and geometry of tires, wheels and powertrain components.
Partnership Overview
Acquisition Dynamic / AIP Differentiation
- Complex carve out from Illinois Tool Works, Inc.
- Addressed product failure concerns during sales process
- Industry recapitalization into higher growth and lower cost regions
Investment Rationale
- Significant opportunity to improve earnings profile
- Leading product performance
- Large installed customer base
- High barriers to entry
- Mission critical nature of products
- Large aftermarket growth opportunity
Value Creation Accomplishments
- Introduced new products including the Modular Test & Measurement System (“MTMS”), the first in industry to integrate all final testing functions in one system
- Moved headquarters to state-of-art facility, resulting in $80 million of additional annual production capacity and improved operations and process flow
- Successfully integrated add-on acquisition of X-ray technology purchased out of German receivership
- Expanded Company’s international footprint including the opening of a large manufacturing facility in Beijing and a sales office in India
- Implemented comprehensive lean manufacturing to increase revenue and gain market share by reducing lead times and direct labor costs
- Implemented strategic procurement function (including global sourcing) to lower material costs
Exit
Sold to a strategic buyer in October 2012
Company Highlights
Acquisition Year
2007
Exit Year
2012
Fund
AIPCF IV
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