Our investment philosophy is differentiated from the typical private equity model in that we invest for the long-term. We partner with our portfolio companies, providing them with the resources to execute on their strategic plans. The Tru-Flex December 2015 acquisition of Sacoma International, a leading designer and manufacturer of metal stamped and assembled parts, tubes, and engineered assemblies for the light vehicle and commercial vehicle markets, is one example of our patient capital investment approach.
To accomplish its goal of market leadership, Sacoma had an immediate need to expand its operations to support the 30-40% growth targets outlined in the strategic plan. Sacoma’s original plant in Edinburgh, Indiana was 42,000 square feet, with very little space available to add equipment. To meet both the strong growth and revenue targets, Sacoma had two options: build additional space or acquire a larger facility.
Tru-Flex and Sacoma completed their plant construction in July 2017, doubling the size of their existing plant and providing the required space to rearrange the plant to create efficiencies. The additional space also allowed for the installation of four additional stamping presses, which are essential to Sacoma meeting the aggressive growth targets. The company is in the process of moving and installing these stamping presses and expect the installation to be completed by the end of the year, providing them with the resources required to become a $60 million division of Tru-Flex by 2020.
As with every great endeavor, there are challenges. Sacoma’s Engineering Manager and a special project team have been carefully planning the plant expansion and equipment installation so as not to disrupt production. The plant has been running at near capacity, and when several pieces of equipment required relocation, the team worked diligently not to interrupt supply. With the broad support of the Tru-Flex and Sacoma teams, equipment installation is on track to be completed by the end of 2017.
Sacoma’s commitment to its suppliers and customers has been evident throughout this process. One of their customers recognized their efforts and awarded Sacoma the Cummins Category Partner Award. Headquartered in Indiana, Cummins Inc., designs, manufactures, sells and services diesel and alternative fuel engine . They recognized Sacoma as being a good fit for their strategic growth and therefore selected them as part of their global stamping and fabricated parts commodity group of suppliers. Sacoma will be listed as a Stamping and Fabrication Category Partner for Cummins buyers worldwide, providing them with an expanded customer base.
By the end of the year, Sacoma will be in an excellent position to not only increase production, but also fulfill the long-term strategic vision of becoming the leader in providing emission system components to the marketplace.
For more information on Sacoma International, LLC, click here.