Tomplast
Country: Slovenia
Region: Zahodna Slovenija
Investors: Arx Equity Partners
Of all industries, plastic components manufacturing was one of the hardest-hit by the recession of 2008-09. ARX Equity Partners’ investment in Slovenian plastics components manufacturer Tomplast, however, emerged in great shape, thanks in part of private equity’s hands-on approach.
Following the succession-driven buyout in 2007, when Tomplast’s founder exited, ARX focused on installing a more international, sales-oriented culture, diversifying the customer base. In 2008, an add-on acquisition was made – a deal which in of itself potentially saved what was a lossmaking business, creating an even stronger combined unit.
Over time the business was repositioned from low margin furniture components into automotive, combined with the gradual introduction of new technologies and the capacity to produce larger and more complex products. Arx sold Tomplast in 2016, generating a 4.1x cash-on-cash multiple for investors.
Emil Uljancic
CEO - Tomplast
The support of ARX has been instrumental in our growth and strategic development to become a competitive international producer of automotive components.
9
consecutive years of growth in employee numbers
3x
rise in revenues since ARX investment
What did the business need?
Exit for founder owners, who had reached retirement age
Improvements to management structure
Product focus and internationalisation
Investments in new production capacity
How did private equity backing create lasting value?
Brought a more international, sales-oriented culture, diversifying the customer base
Made an add-on acquisition, potentially saving a loss-making business
Strict financial and operational discipline installed
Drive to become developer/supplier, decommoditising role in value chain
Investments into new facilities and technologies
What outcomes did private equity investment achieve?
Employee numbers have grown from 77 to 300 over course of investment
Revenues have risen threefold, with strong profitability
Successfully exited in Q1 2016 to a buyer with the intention to further grow the business
Investors
