Portec Group International

The Story

Portec Group International is the leading North American manufacturer of power belted turn and spiral conveyors and related parts for the airport baggage handling, distribution and warehousing, postage and parcel, and manufacturing industries. The Company has an installed base of over 50,000 units, most of which were customized to exact customer specifications.

Transaction Dynamics

A partnership with management to acquire the company from a private owner.

Investment Thesis

  • Recognized leader in niche conveyor market for turns and rises
  • Reasonable growth opportunities
  • Opportunity to divest non-core assets
  • Opportunity to upgrade management
  • Identify material handling acquisition opportunities
  • Develop parts and service business which was not important to the prior owner
  • Attractive purchase multiple and reasonable leverage

Incline Value Enhancement

  • Recruited new CEO and COO to strengthen strategic planning and operational controls
  • Recruited ex-FedEx Ground President as board member to provide strategic guidance
  • Deleveraged the business through the divestiture of two non-core business lines
  • Formalized a JV agreement with a partner in Asia to better serve the rapidly growing Chinese market
  • Stimulated growth through new product introductions
  • Developed distribution relationships in underserved markets including Mexico and S. America

Headquarters

Canon City, CO

Industry

Specialized Light Manufacturing

Investment Date

March 2005

Status

Realized

Fund

I

Incline’s experience and support through a turbulent economic cycle enabled the Company to thrive through all phases of growth. Marco Oropeza, Chief Executive Officer

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