Service: Merger Integration
Manufactures and distributes law enforcement and security products including duty gear, holsters, body armor and tactical headsets.
Located in Ontario, CA, The Safariland Group is the largest manufacturer of law enforcement equipment in the United States.
Serving the law enforcement, military, paramedic and outdoor enthusiast markets, Safariland manufactures and distributes holsters, body armor, handcuffs, batons, body cameras, forensic kits and an extensive array of other products used for security and safety. With principal manufacturing facilities in California & Florida, Safariland operates under the brands Safariland, Bianchi, Vievu, Defense Technology and a number of other brands.
Over the last 25 years, Safariland had completed 25 acquisitions and had accumulated 27 different product brands. As a result of these numerous acquisitions, the company inherited multiple distribution networks, retail stores and logistics systems that were not integrated, resulting in redundant costs and inefficiencies.
The Maven team worked with leadership in the distribution business over a four month period to analyze the situation with a two prong approach: First, they built and prioritized a list of more than 40 profit improvement opportunities, including both cost reduction and revenue growth ideas. These were vetted, analyzed and prioritized to build a short list of items for the company to pursue. Second, the team analyzed the distribution network and recommended that Safariland move to an integrated distribution system with a centralized distribution center located in a geographically advantageous location. These changes will enable long-term growth for the company as additional acquisitions are made and organic growth occurs. Additionally, this enables the company to become more customer-centric, leveraging omni-channel and e-commerce technologies going forward. The opportunities identified by the Maven team will result in a 42% improvement in EBITDA for the distribution business over three years.
The largest wine producer and distributor of 100s of brands in Canada
In late 2016, OTPP acquired the Canadian business of Constellation Brands (now Arterra Wine Canada), the largest wine producer and distributor of 100s of brands in Canada including Jackson-Triggs, Inniskillin, Robert Mondavi and Kim Crawford.
Ontario Teachers’ Pension Plan (OTPP) is an independent organization responsible for managing the pensions for teachers in the province of Ontario. OTPP is one of the world’s largest institutional investors with net assets at ~$194Bn as of June 30th, 2018. The fund is home to one of the world’s largest pools of Private Capital, actively seeking opportunities for partnership and investments in companies looking to grow. Private Capital accounts for ~$32Bn in net investments with capital deployed through direct / co-investments and funds. In late 2016 OTPP, OTPP acquired the Canadian business of Constellation Brands (now Arterra Wine Canada), the largest wine producer and distributor of 100s of brands in Canada including Jackson-Triggs, Inniskillin, Robert Mondavi and Kim Crawford.
Gregg Meheriuk (Senior Principal, the Private Capital Group) engaged Arterra to develop a Value Creation Plan (VCP) that identified the key levers to drive growth in the business in excess of the original investment thesis. Unlike many private equity firms, OTPP leverages a ‘Playbook’ early in an investment that aligns the Board of Directors on key questions to assess in the VCP. It then engages with the company to develop a detailed plan underpinning the investment.
Given that OTPP has approximately 50 companies in the Private Capital Group, Mr. Meheriuk leverages outside advisors to help develop the VCPs. After evaluating several consulting firms, from larger well-known consulting firms to boutique shops, the management team and Mr. Meheriuk selected Maven Associates to co-develop the VCP. They felt that Maven could deliver a high quality team of former Tier 1 consultants, utilize a more collaborative approach, and engage with the management team more effectively while remaining cost effective.
Over a six-month period, the Arterra management team, Maven and Mr. Meheriuk developed a VCP that helped identify several significant opportunities to drive EBTIDA that exceeded the initial investment thesis. These drivers included pricing and promotion, new product development, operations and gaining operating leverage with the SG&A. Additionally, upon completion of the VCP, OTPP, along with management, operationalized the VCP by creating a robust project management process to ensure it captured the identified value.
A year later, OTPP continues to leverage the VCP to ensure Arterra Wines Canada achieves the value identified.
