Kensington Capital Partners (“Kensington” or the “Company) is pleased to announce the sale of Prodomax Automation Ltd., a specialized industrial engineering firm focused on designing complex manufacturing production systems for automotive companies, to Jenoptik AG based in Jena, Germany. Since the acquisition in 2015, our team has worked with management to organically grow the EBITDA from $11.5 million to $20 million through a number of initiatives including:
- significantly expanding plant capacity
- installing a new ERP system with more robust project management capabilities
- implementing a rigorous budgeting and planning process
- recruiting additional engineering, controls and robotics expertise to handle the increased size and volume of projects
- strengthening the financial management of the company by adding several senior positions in accounting and reporting
Kensington realized a gross internal rate of return (IRR) of 75.2% and a gross multiple of invested capital (MoIC) of about 4.8x during its three year holding. Prodomax is now well positioned for continued growth. Jenoptik was impressed with the Prodomax team throughout this process and senior management will be assuming significant roles in Jenoptik’s North American operations going forward.