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Specialty Manufacturing
In the Specialty Manufacturing arena, we seek investment opportunities of value-added designers and manufacturers of highly engineered materials, components and parts that serve growing end markets. These growth “derivative” investments include companies serving the following end markets:
- Communications – Wireless, Cable and Video
- Healthcare
- Information Technology
- Supply Chain Management and Logistics
- Testing and Measurement
- Controls, Drivers and Gears
We look for Specialty Manufacturing companies with the following characteristics:
- Greater than $15 million of revenue and $5 million of EBITDA with minimal capital expenditure requirements
- Market leader in a niche market
- Diversified and referenceable customers
- Large (> $200 million) and growing end market
We seek to accelerate the growth of our Specialty Manufacturing investments through various strategies including add-on acquisitions, additional capital investments and management additions. One of the value-added skill sets that Cornerstone brings to bear in this sector is the ability to help portfolio manufacturing companies determine whether offshore production makes sense and, if so, to what extent production should be either done through developing directly owned offshore facilities or outsourcing aspects of the manufacturing process to others. Several prior Cornerstone portfolio companies in this sector saw their businesses grow and profits rise as the result of developing low cost production facilities in offshore locations such as China, Malaysia, Singapore and Thailand.
Representative Specialty Manufacturing portfolio companies include:
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Business |
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Wireless Handset Components |
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Disk Drives |
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Personal Computers |
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Electronic Manufacturing Services |
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Component supplier for bandwidth networks |
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Wireless data access solutions |
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Manufacturer and Marketer of Golf Club Shafts |
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Magnetic storage products |
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