Indiana Limestone Company is the leading producer of Indiana Limestone building products and materials in the United States. Based in Bloomington, Indiana, with legacy operations dating to the mid-1800s, the vertically integrated company controls 70 percent of Indiana and 30 percent of U.S. dimensional limestone reserves. Indiana Limestone’s products are chosen by owners and designers of commercial, institutional and residential buildings ranging from classical to high-tech in architecture and performance.
Wynnchurch acquired the senior secured bank debt of Indiana Limestone in January 2014 and acquired the company’s assets pursuant to a strategic Chapter 11 bankruptcy proceeding in May 2014.
Indiana Limestone represented an opportunity to acquire at an attractive valuation a leader in a market with high entry barriers. Prior owners had restricted capital expenditures and raw material production, while liquidating excess inventory to generate cash. This eventually led to significant declines in revenue and EBITDA when inventory levels dropped and inventory quality was compromised. In a sale process mandated by Indiana Limestone’s lenders, Wynnchurch offered to purchase the notes they held, facilitating a quick exit by the lenders. This, in turn, allowed Wynnchurch to immediately fund the company’s turnaround in bankruptcy, hiring management and hourly personnel, initiating new equipment purchases, and restarting and realigning production operations.
Wynnchurch hired a new CEO with significant building products experience. This executive has significantly top-graded personnel and implemented new processes and systems. The company initially consolidated operations, exiting unprofitable business lines and rightsized its labor force. Since then, the company has expanded operations and improved its production capabilities, building a higher-value inventory mix. Management and Wynnchurch continue to advance a growth agenda, developing multiple opportunities in new and existing product lines, continuously improving operations, implementing lean manufacturing processes, renewing customer focus and improving the company’s go-to-market strategy.