Current Portfolio Companies - Senco Brands, Inc.
Senco Brands, Inc. Industrial Grade Fasteners and Fastening Tools
Cincinnati, Ohio
BUSINESS: Senco Brands, Inc. is a leading designer, manufacturer and marketer of branded fastening tools and collated staples, nails and screws.
TRANSACTION: Burdened by declining market conditions and heavy legacy costs related to its former parent company, Senco began exploring a sale of the company through a Section 363 sale process and eventually filed for Chapter 11 bankruptcy protection in May 2009. Wynnchurch was the stalking horse bidder in the sale process and the transaction closed in July 2009.
BACKGROUND: For nearly 60 years, the SENCO brand has been recognized around the world as one of the leading names in wood to wood construction. With tools, fasteners and accessories for use in a variety of professional fastening segments - home construction/remodeling, furniture, manufactured housing, pallets/crating - SENCO products are available through professional distribution outlets in more than 40 countries. In addition, the company's TyRex brand features tools and collated fasteners for use in concrete and steel fastening applications found in the construction of high-rise structures, hospitals, schools and roads and bridges.
OPPORTUNITY: Senco represented an opportunity to invest in an industry-leading company at a cyclical trough and at an attractive value. The company is well-positioned to capture significant market share and to pursue organic and acquisition-related growth opportunities.
STRATEGY: Wynnchurch is working with the management team to continue to realign the company's cost structure and to position Senco Brands for profitable growth through a rigorous focus on capturing additional international and domestic market share, re-invigorating new product development, and implementing internal cost controls and a more metrics-driven management philosophy.