Nine Acquisitions, Organic Growth, Diversified Products and Systems Upgrades Led to Successful Sale of GHX
In business for more than 70 years, GHX was a distributor of fittings, gaskets and sealing products, and valves to the energy and other end markets. Capstreet partnered with GHX leadership to create a more substantial business, adding depth to the management team, upgrading systems, executing on organic growth strategies, diversifying product offerings and completing nine acquisitions. The expanded organization included 39 locations across the US and Canada.
Path to Value Creation
CapStreet transformed GHX into a platform for continued, long-term growth with strategies that included:
- Recruited CEO and 5 other key management members
- Recruited outside directors
- Implemented new ERP system on-time and on-budget
- Implemented strategic pricing
- Executed successful marketing and branding program, establishing GHX as a leading brand in the industry
- Completed and successfully integrated 9 add-on acquisitions
- Increased number of branches from 7 to 39
This case study is included for informational purposes and should not be construed as a recommendation of any particular investment. A complete list of Capstreet’s current and prior investments is available upon request. It should not be assumed that investments made by the Fund will be comparable in quality or performance. Capstreet’s investment strategy involves substantial risks and uncertainties including the potential loss of all or a substantial portion of invested capital. There is no guarantee that Capstreet will successfully execute its investment strategy or achieve its investment objective(s). Information included herein relating to market characterization has been determined by Capstreet as of January 2023. Although Capstreet believes that such determinations are reasonable, they are inherently subjective in nature. Other market participants may make different determinations based on the same underlying data.