Halco is a leading designer and supplier of lamps (light bulbs), ballasts, and LED fixtures for the commercial, industrial, and specialty lighting markets.
OVERVIEW
Halco’s primary shareholder was seeking an investor to provide significant personal liquidity to diversify his net worth while also providing his leadership team with an opportunity to grow the business and create personal wealth for themselves. He selected Lineage because of our unique recapitalization model and extensive experience working with owner-managers and their leadership teams to grow their businesses. Our recapitalization model enabled the owner to retain control of the Board of Directors in order to support the continued development of his key team members.
During Lineage’s investment period, we worked with Halco to broaden the company’s leadership team and build a deeper, more institutionalized product sourcing function. We helped the company execute on several growth initiatives, including the development of a complete LED lamp product offering, entrance into the rapidly-growing LED fixture market, an upgrade of the company’s sales representative network, and the opening of new distribution warehouses in attractive locations.
RESULTS
Halco experienced strong organic growth during Lineage’s investment period. Ultimately, we sold our investment to a private equity firm along with Halco’s founder, who achieved a meaningful “second bite” and—as planned—fully transitioned out of the business. The sale allowed the management team to create some personal wealth and to continue to drive the growth of the business.
Investment Date: December 2012
Exit Date: December 2015
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