A business division was established in 2001 in Humboldt, Iowa as a strategic expansion of a parent company. The division started in a 25,000 square foot facility specializing in the design and fabrication of custom stainless steel material handling and packaging equipment for food stock environments. The division was envisioned as an extension of the parent company and its controls business. The division was designed to have the capability, resources and experience to offer certain upgraded levels of both fabrication and controls. The division operated as a stand-alone entity with large, quality customers, including exclusive manufacturing agreements with companies like Wells Dairy (Blue Bunny) in Le Mars, IA. The parent company’s long-term plans for growth and profitability in the division and strategic alignment with their controls business did not meet its current strategic benchmarks. The parent’s core business was growing, and therefore, decided to focus resources on that business. The parent decided to sell the division. The parent company retained Turning Point to advise the Company and determine the best options to optimize the divisions’ value to the parent. Options included selling the Division, continue current operations implementing a viable turnaround plan and/or invest in and grow the business. Turning Point determined the best option to be a sale of the division.
Turning Point, through its broad base of contacts, identified a number of buyers that fit the profile. The buyer chosen was an excellent fit as it was seeking to expand its market base, add product lines and establish a new distribution location. The sale was completed within 90 days of engagement.