IATGlobal Manufacturing

Bringing Advanced Manufacturing and Automation Solutions to the Middle Market

Company: IATGlobalIndustry: TechnologyHeadquarters: ChicagoFounder: John DewanFounded: April 30, 1981COO: Mike PerezEmployees: 100+

Testimonials

Caloah was created to be a different kind of investment manager: one that places its core values above all else. We believe integrity is a critical factor in business success and this core tenet starts with us and is reflected in our portfolio investments as well as our business partners. It’s for this reason that we hold ourselves accountable by aligning our interests with commercial partners that entirely share our core values.Aleem Ahamed, Founder & Managing Partner

“ CNC machining services that aid in the industrial automation industry, generating $2.5 Million in high margin annual sales.”

The Opportunity

Innovative Applied Technologies (IAT) was a small, family-owned machine shop that operated from an older, 15,000 SF manufacturing facility in Windsor, ON and provided precision CNC machining services that aid in the industrial automation industry, generating $2.5 Million in high margin annual sales.

IAT was owned by two equal partners, Mark Mizon (current CEO) and his business partner (since exited the business) who were at different stages of their lives. Mark was 10 years the junior of his partner and was not looking for an exit; Mark’s business partner was looking for a liquidity event and retirement.

Mark was an entrepreneur who held subject matter expertise and significant experience in sales, but a limited background in operations, human resource management, finance and corporate governance; these areas having historically been managed by his business partner.

After extensive due diligence, a transaction was consummated and BlueArck became the majority shareholder of Innovative Applied Technologies in October 2015.

ATGlobal Manufacturing

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“Development of a new, 28,000 SF greenfield manufacturing facility began and was completed in November 2016.”

The Process

With no ERP system or IT platform in place, this became an immediate investment priority. SAP was selected as the right ERP partner and a custom solution was to be developed. Other project management software was available, however, the level of detail required to run the business required a custom solution.

Operations were housed in a small, older facility that did not suit the needs of IAT or its clients and inhibit the company from attracting new customers. Development of a new, 28,000 SF greenfield manufacturing facility began and was completed in November 2016.

Further investment was made into CNC machinery and vital quality control equipment to support existing operations.

Human resources were reconfigured to create a structure that complemented Mark’s strengths and filled gaps where there were weaknesses, with BlueArck providing support in the background and from a more strategic level.

Acquisition & integrationof NH global design

NH Global Design (NHG) was introduced to BlueArck by a Big 4 accounting firm as a potential fit to expand IAT’s capabilities, giving it access to a new high technology discipline. Each company had a unique client base that could be cross-marketed and a product offering that could be complimentary if structured and managed correctly.

After going through extensive due diligence to ensure a financial and, more importantly, cultural fit (with an alignment of core values), IAT acquired NHG in July 2016.

Through November 2017, when IAT and NHG were amalgamated to form IATGlobal Manufacturing Ltd., an extensive integration process ensued to drive a new unified process and procedures to improve operations.

To better align with its new, full-service complement, IATGlobal’s mission was amended from having a product-focus to a solutions-based approach. This allowed for a broader spectrum of opportunities based on IATG’s expanded capabilities in machining and end-to-end industrial automation

The focus on customer service was a critical element as was human resource management to bring focus to the team and ensure the company was properly aligned.

Implementation of SAP to align with role definitions was a key part of this process to ensure the team was given the tools to succeed and ensure our customers were receiving great solutions and value.

Similar to IAT, NHG was operating from an older facility and required investment in a new building

BlueArck then acquired land in Chatham, ON and developed a 38,000 SF facility that was better suited to drive growth within the industrial automation industry.

Active Investments

Percent Revenue Growth

195

Thousand SF of Owner Real Estate

130

Percent Growth in Cash Flow

“Revenue growth since acquisition of IAT has reached 35.6% (CAGR)”

Results

With a new complement of products and services, operating from new facilities, a new ERP system and set of processes and procedures, IATGlobal has gone through a full infrastructure build and is ready to hit the market.

Traction with existing and new clients is better than it has ever been and the company is poised for rapid growth over the next 5+ years, ready to expand into new markets.

Our team now works as a team to collaborate and generate solutions that are tailored for our customers.

Revenue growth since acquisition of IAT has reached 35.6% (CAGR) and is expected to continue to grow as the team capitalizes on its new-formed infrastructure.