$100M Pipe and Parts Distributor

//$100M Pipe and Parts Distributor
$100M Pipe and Parts Distributor2019-05-21T20:36:59+00:00

Company Overview: $100M Pipe and Parts Distributor

Company Overview

  • $100M pipe and parts distributor
  • Private equity owned

Business Facts

  • Annual revenue decreased from $115M to $85M
  • Annual Profit decreased from $12M to $3M per year
  • PE firm was unsuccessful in its attempt to sell the company

Results delivered

  • Profit increased by 50% within 12 months
  • Closed one nonstrategic inventory location saving $800K per year
  • Strategic procurement – Negotiated long term contracts with major suppliers and reduced procurement cost by 8%
  • Inventory rationalization – Increased inventory turns from 1.5 to 3 per year