This summary provides an overview of key points from the document:
1) Fifth Third Bank has surpassed its $2.5 billion lending commitment through the Pure Michigan Business Connect program, originating over $2 billion in loans to Michigan businesses so far.
2) The program provides collateral support that has enabled Fifth Third to provide loans to businesses that may not have otherwise qualified due to tight lending regulations.
3) Fifth Third has funded $40 million in loans to 40 companies through the Michigan Economic Development Corporation's collateral support program.
4) Fifth Third's commercial lending in Michigan is up 30% in 2012 compared to 2011, which a bank executive partly credits to Michigan's improved economy.
Webinar presented by TMA SoCal featuring panelists from Business Capital, Midcap Financial and Robins Kaplan with perspectives on borrowing, lending and legal implications during the COVID-19 crisis.
China Transactions Insights Spring 2018Duff & Phelps
There were six U.S.-listed Chinese company going-private transactions that closed in 2017, compared to 22 transactions in 2016. Total implied equity value for 2017 closed transactions was US$7.3 billion, down from US$26.5 billion in 2016. Read more about China's transactions insights here..
Webinar presented by TMA SoCal featuring panelists from Business Capital, Midcap Financial and Robins Kaplan with perspectives on borrowing, lending and legal implications during the COVID-19 crisis.
China Transactions Insights Spring 2018Duff & Phelps
There were six U.S.-listed Chinese company going-private transactions that closed in 2017, compared to 22 transactions in 2016. Total implied equity value for 2017 closed transactions was US$7.3 billion, down from US$26.5 billion in 2016. Read more about China's transactions insights here..
Martin Ebner and Sandra Schaffert kindly ask for contributions to a special track within the ICL conference in Villach, AT (23-25 September 2009): The MASHL2009 deals with “Mashups for Learning”. more:http://sandra.schaffert.ws/?p=627
It is getting increasingly difficult (not that it was ever easy) to justify the investment that a client makes with respect to a social media campaign. Qualitative metrics no longer seem to work in a standalone manner. The challenge lies in showcasing the real value that social media brings to the client‘s business in terms of metrics relevant to the business. Learn what needs to be measured, how it should be measured and the best practices in measuring the right things in the ‘social world‘ from our in-house social media Guru, Rohit Onkar.
Gracias a este práctico catálogo podrás aprender y compartir las características, ingredientes y modo de empleo de los 35 productos 4Life disponibles en Europa. Más de 56 páginas para dar a conocer cada uno de los productos de 4Life:
• Productos Transfer Factor® Tri-Factor™.
• Línea enummi™ para el cuidado personal.
• Productos ShapeRite® de 4Life® para una vida activa.
• Productos para el bienestar general.
La dieta cetogénica en pdf para conocer más sobre ella y aprender cómo hacerla correctamente con sus ventajas y desventajas. Entrar en cetosis del modo correcto.
Se presenta el desarrollo y solución de un problema de programación lineal resuelto con SOLVER, paso a paso desde la formulación hasta la interpretación de la solución.
This powerpoint represents a semester long consulting project carried out by myself and 4 other students for a local construction management firm named PJ Dick. Our project and presentation involved analyzing PJ Dick\’s proposed new business venture and recommending proper course of action through strategic analysis. This was then presented to the company\’s executive board.
1Running Head Case Analysis Assignment #2 ContiGroup Inc.PA.docxfelicidaddinwoodie
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Running Head: Case Analysis Assignment #2 ContiGroup Inc.
PAGE
4
Case Analysis Assignment Citigroup Inc.
Introduction
Citigroup Inc. was founded in 1812 by Samuel Osgood in New York City. To this day, the organization’s headquarters remain in its initial foundation however, the company has grown from its humble beginnings of a mere 2 million dollars in assets to a market capitalization of 162 billion dollars as of 2014. (David & David, 2017). Operating in more than 160 countries with over 900 million retail accounts and more than 250,000 employees in total, Citigroup is currently known as the “world’s largest credit card issuer and largest banking enterprise” (David & David, 2017). However, Citigroup has faced significant issues in terms of how it has been perceived by the US government, specifically regarding the bailouts and ethical issues surrounding the implications of Citigroup’s actions on the overall worldwide economy.
Mission Statement
Citigroup’s current mission statement has been defined as follows, “Citi works tirelessly to serve individual, communities, institutions and nations. With 200 years of experience meeting the world’s toughest challenges and seizing its greatest opportunities, we strive to create the best outcomes for our clients and customers with financial solutions that are simple, creative and responsible. An institution connecting over 1,000 cities, 160 countries and millions of people, we are your global bank, we are Citi” (David & David, 2017). Overall, this mission statement seems to be very detailed and effectively structured, as it outlines the reach of the organization as well as their accumulated experience and the sheer scale, number of employees and customers. However, perhaps what is missing from this statement is the concept of the causes that Citi cares about and what they are dedicated to/how they define themselves.
New Mission Statement
The new mission statement has been developed as per the textbook format (David & David, 2017). Citigroup serves a global (3) customer base, in over 160 countries (1). We provide “global banking, advisory services, derivative services, brokerage, mortgages and auto loans” (2) (David & David, 2017). Citigroup employs over 250,000 people and continuously invest in their career development and ensure that they provide the best services to our customers (9), representing values of professionalism and care (7)(6). At Citigroup, we are constantly innovating, leveraging technology (4) and striving (5)(6) to “create the best outcomes for our clients with financial solutions that are simple, creative and responsible” (David & David, 2017) (8).
Vision Statement
Currently, Citigroup does not have a defined vision statement (David & David, 2017).
New Vision Statement
Citigroup’s vision is to leverage our 200 years of experience to create and develop industry-leading, revolutionary and innovative financial solutions for our clients around the world.
SWOT Analysis
...
Martin Ebner and Sandra Schaffert kindly ask for contributions to a special track within the ICL conference in Villach, AT (23-25 September 2009): The MASHL2009 deals with “Mashups for Learning”. more:http://sandra.schaffert.ws/?p=627
It is getting increasingly difficult (not that it was ever easy) to justify the investment that a client makes with respect to a social media campaign. Qualitative metrics no longer seem to work in a standalone manner. The challenge lies in showcasing the real value that social media brings to the client‘s business in terms of metrics relevant to the business. Learn what needs to be measured, how it should be measured and the best practices in measuring the right things in the ‘social world‘ from our in-house social media Guru, Rohit Onkar.
Gracias a este práctico catálogo podrás aprender y compartir las características, ingredientes y modo de empleo de los 35 productos 4Life disponibles en Europa. Más de 56 páginas para dar a conocer cada uno de los productos de 4Life:
• Productos Transfer Factor® Tri-Factor™.
• Línea enummi™ para el cuidado personal.
• Productos ShapeRite® de 4Life® para una vida activa.
• Productos para el bienestar general.
La dieta cetogénica en pdf para conocer más sobre ella y aprender cómo hacerla correctamente con sus ventajas y desventajas. Entrar en cetosis del modo correcto.
Se presenta el desarrollo y solución de un problema de programación lineal resuelto con SOLVER, paso a paso desde la formulación hasta la interpretación de la solución.
This powerpoint represents a semester long consulting project carried out by myself and 4 other students for a local construction management firm named PJ Dick. Our project and presentation involved analyzing PJ Dick\’s proposed new business venture and recommending proper course of action through strategic analysis. This was then presented to the company\’s executive board.
1Running Head Case Analysis Assignment #2 ContiGroup Inc.PA.docxfelicidaddinwoodie
1
Running Head: Case Analysis Assignment #2 ContiGroup Inc.
PAGE
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Case Analysis Assignment Citigroup Inc.
Introduction
Citigroup Inc. was founded in 1812 by Samuel Osgood in New York City. To this day, the organization’s headquarters remain in its initial foundation however, the company has grown from its humble beginnings of a mere 2 million dollars in assets to a market capitalization of 162 billion dollars as of 2014. (David & David, 2017). Operating in more than 160 countries with over 900 million retail accounts and more than 250,000 employees in total, Citigroup is currently known as the “world’s largest credit card issuer and largest banking enterprise” (David & David, 2017). However, Citigroup has faced significant issues in terms of how it has been perceived by the US government, specifically regarding the bailouts and ethical issues surrounding the implications of Citigroup’s actions on the overall worldwide economy.
Mission Statement
Citigroup’s current mission statement has been defined as follows, “Citi works tirelessly to serve individual, communities, institutions and nations. With 200 years of experience meeting the world’s toughest challenges and seizing its greatest opportunities, we strive to create the best outcomes for our clients and customers with financial solutions that are simple, creative and responsible. An institution connecting over 1,000 cities, 160 countries and millions of people, we are your global bank, we are Citi” (David & David, 2017). Overall, this mission statement seems to be very detailed and effectively structured, as it outlines the reach of the organization as well as their accumulated experience and the sheer scale, number of employees and customers. However, perhaps what is missing from this statement is the concept of the causes that Citi cares about and what they are dedicated to/how they define themselves.
New Mission Statement
The new mission statement has been developed as per the textbook format (David & David, 2017). Citigroup serves a global (3) customer base, in over 160 countries (1). We provide “global banking, advisory services, derivative services, brokerage, mortgages and auto loans” (2) (David & David, 2017). Citigroup employs over 250,000 people and continuously invest in their career development and ensure that they provide the best services to our customers (9), representing values of professionalism and care (7)(6). At Citigroup, we are constantly innovating, leveraging technology (4) and striving (5)(6) to “create the best outcomes for our clients with financial solutions that are simple, creative and responsible” (David & David, 2017) (8).
Vision Statement
Currently, Citigroup does not have a defined vision statement (David & David, 2017).
New Vision Statement
Citigroup’s vision is to leverage our 200 years of experience to create and develop industry-leading, revolutionary and innovative financial solutions for our clients around the world.
SWOT Analysis
...
The "India Digital SME Credit Report 2023," a collaboration between GetVantage and Redseer Strategy Consultants, reveals that a significant credit deficit of approximately $220 billion is impeding the economic progress of digitized businesses. Despite an infusion of $53 billion in FY22 and an estimated $165 billion being serviceable after accounting for unviable businesses, the current working capital deficit remains at $112 billion. The report predicts that the demand for credit will surpass $570 billion in the next five years as the number of digital SMEs doubles. This deficit hampers innovation, job creation, scaling, and efficiency building among new-economy businesses. The report underscores the crucial role of alternative financing platforms, such as revenue-based financing, in addressing this gap and fostering economic growth.
A clip from the Nov. 2009 issue of the Detroiter Magazine featuring an ad where I did the copywriting, contributed to the concept & provided art direction. Also featured is a corresponding pieced I penned in promotion of this statewide talent retention/attraction initiative.
The St. Lawrence Corridor Economic Development Commission Annual Report 2020 highlights our regional economic development strategy, progress and activities. Its purpose is to communicate and share our efforts and mandate with the respective member municipal councils and the broader community. Completing the report puts this tumultuous year in perspective and clarifies the importance of our renewed strategy and focus on creating jobs and regional prosperity. It also testifies to our resilience as a community. I am certainly grateful for the time, energy and commitment to our commission's Board of Directors.
Missouri Can Company (A Hypothetical company) The Miss.docxraju957290
Missouri Can Company
(A Hypothetical company)
The Missouri Can Company (MCC) was a firm with a long and uneven history. At one time or
another it had been a competitor in more than two dozen industries with varied success. Each of
the several CEOs had developed a different strategy and over the decades the firm had had many
manifestations. The only real constant in MCC’s strategy had been a commitment to the
packaging business in its several forms. But, even in this business there had been any number of
changes in direction which diluted the impact of capital spending and had the effect of MCC
never achieving a strong position in any of the packaging segments although, briefly, in the early
years MCC’s total packaging revenues made it the largest packaging company in the world. The
lack of a competitive advantage in any of the large packaging segments resulted in MCC being
pushed into producing commodity products, which had them penned between powerful steel and
tinplate suppliers and powerful food and beverage producers as customers. Also, as its large
customers grew there was pressure for them, especially in the low margin food business, to build
their own packaging facilities, especially can plants. The long term effect of this was to cause
MCC’s packaging profitability to lag its better positioned competitors.
At one time or another, the company produced auto parts, electrical equipment, power
equipment, electric motors, metal alloys, airplane wings, furniture, appliances, communications
equipment, specialty chemicals, and consumer products, to name only the most important of its
many businesses. MCC also bought several regional retail chains. None of these businesses
worked out well and all were either sold or liquidated at a loss. The financial and human capital
devoted to these businesses was largely lost. Further, the problems they caused diverted capital
and management attention from better opportunities.
NEW STRATEGIES FOR THE COMPANY
Under still another new CEO, a management consensus had developed. The consensus was to (1)
reduce holdings in operations that fall short of performance goals or do not fit the long-term
strategy of the company, and a target of realizing $600-$700 million from the sale of such assets
was established, (2) reinvest these funds in areas promising profitable growth, (3) improve return
on equity over the long term as a consequence of this reinvestment strategy, and (4) strengthen
MCC’s balance sheet and credit standing. The new benchmarks for the firm included having a
well-balanced BCG matrix that considered fast growing industries to be those that were growing
at more than 10% per year. The end result would be a firm with four main businesses: financial
services, energy, packaging and forest products. The latter was primarily a paper, fiber drum, and
cardboard business that also generated about 25% of revenues from selling lumber and woo ...
1. Smoke and Indie hospitals
mirrors? under pressure
PAGE 14 PAGE 22
OCTOBER 15, 2012 • VOL. 25/NO. 1 • $1.50 Serving Western Michigan Business Since 1988 www.mibiz.com
SPEED READ
Rack transplant
GRAND RAPIDS — A Chicago-based
manufacturer bought a building and
plans to open up shop in Grand Rapids
to be close to its customers. Page 8
Stock in the Market
GRAND RAPIDS — Downtown Grand
Rapids seems to have spilled a few
streets south, the result of confidence
inspired by the $30 million Downtown
Market. Page 12
Broader, younger audience
WEST MICHIGAN — Successful
nonprofits realize they must reach
out to younger donors – and on their
terms – if they want to be sustainable.
Page 15
Accelerated action
GRAND RAPIDS — Michigan
Accelerator Fund surpasses its fund-
raising goal and prepares for potential
exits. Page 16
Pine Rest makes a move
GRAND RAPIDS — Pine Rest plans
to consolidate some offices to a new
building Dwelling Place has planned at
its Herkimer Hotel project. Page 20
JUGGLING ACT
Neuro needs
GRAND RAPIDS — Spectrum Health’s
expansion of its neurosciences capa-
bilities aims to serve a growing number
of patients with neurological disorders.
Page 23
2012: An exceptional vintage?
WEST MICHIGAN — Oenophiles that Wolverine World Wide CEO Blake Krueger prepares to integrate
immediately pass on Michigan wines
in favor of more complex quaffs may one of the largest ever acquisitions in the footwear industry.
want to give the state’s 2012 vintages
another look. Page 24 SEE PAGE 4
STORY: JOE BOOMGAARD • PHOTO: JEFF HAGE
Plan for crisis
WEST MICHIGAN — The best way to
manage a crisis is to have a clear and
effective plan in place before one hap-
pens, experts say. Page 26
Fifth Third ahead of schedule in Michigan lending program
Tech firms vie for prize By Mark Sanchez | MiBiz otherwise may not have done, The bank to date has surpassed 80 percent of the $2.5
WEST MICHIGAN — Four firms from West msanchez@mibiz.com given the tight federal regu- billion commitment and is well ahead of expectations,
Michigan have been selected as finalists lations right now over com- Doyle said. Fifth Third is 30 percent of the way to another
in the $1 million Accelerate Michigan WEST MICHIGAN — When it came time for a mercial lending and collat- $2.5 billion commitment made in November 2011 for
Innovation Competition. Page 32 Standish-based plastic molding company to grow, the eral requirements, said Tim consumer and mortgage lending.
company went looking for a loan to finance an expan- Doyle, Fifth Third’s senior Huntington Bank, which committed $2 billion
ISSUE INDEX sion. But the firm didn’t qualify for a loan because of vice president and business over four years to small business lending through
a lack of adequate collateral, the result of the recession banking manager in West Pure Michigan Business Connect, said in June it had
Company Index 3
Design+Build 20
that pushed down the valuation of many companies. Michigan. originated more than $1.5 billion in loans to more
Economic Development 12 The solution for Vantage Plastics came via a “They would have been than 2,500 business.
Finance 16 Michigan Economic Development Corp. program harder transactions to get Doyle Doyle partly credits Fifth Third’s commercial loan
Focus: Logistics 28 that supports the collateral needs for businesses seek- done,” Doyle said. “We’ve volumes through Pure Michigan Business Connect to
Food Biz 24 ing credit, which enabled the company to secure a loan been somewhat handcuffed through regulatory the state’s improved economy, especially in the manu-
Health Biz 22 from Fifth Third Bank. The transaction is one of many channels.” facturing sector where companies are making capital
Manufacturing 8 Fifth Third has conducted as part of Pure Michigan Participation in the MEDC collateral program is purchases, acquisitions and facility expansions. Fifth
Nonprofit Organizations 15 Business Connect, an initiative by Gov. Rick Snyder one aspect of Fifth Third’s broader role and its $2.5 Third’s overall commercial lending in Michigan is
People & Datebook 33 and the MEDC to get Michigan businesses doing more billion, three-year commercial commitment made running about 30-percent higher in 2012 than in 2011,
Pay It Forward 6
business with each other. a year ago to Pure Michigan Business Connect. The he said.
Q&A and In the News 34
Small Business 26
Fifth Third to date has funded $40 million in amount was about 25 percent higher than what Fifth “It’s very positive,” Doyle said.
Talent Development 27 loans for 40 companies alone through the MEDC Third loaned to businesses in Michigan in the prior
Technology 32 collateral support program. They are deals the bank three years, Doyle said at the time. See PURE MI BUSINESS CONNECT | page 2
P E R I O D I C A L S
Magna plans
new sunroof Battling Back
facility for MiBiz Supplement:
Holland Calhoun County
BATTLING
PAGE 10
M A D E I N
INSIDE THIS ISSUE
BACK
CER EAL CIT Y REIN
VEN TS ITS ELF
MICHIGAN
Sponsored by Chemical Bank
4. 4 OCTOBER 15, 2012 • MiBiz Visit www.mibiz.com
JUGGLING ACT
Wolverine World Wide CEO Blake Krueger prepares to integrate
one of the largest ever acquisitions in the footwear industry.
By Joe Boomgaard | MiBiz
jboomgaard@mibiz.com
ROCKFORD — Two decades of merger experi-
ence have prepared Wolverine World Wide Inc.
for the biggest acquisition in the company’s his-
tory and one of the largest and most complex
deals ever in the footwear industry.
The Rockford, Mich.-based footwear com-
pany’s role in the $2.0 billion acquisition of
Collective Brands Inc. should yield consider-
able growth for the company that makes Hush
Puppies and Merrell shoes. Company executives
proudly claim the transaction, which was final-
ized last Tuesday, makes Wolverine the third-
largest footwear company in the world, trailing
only Nike Inc. and Adidas AG. The acquisition
is expected to add $1 billion in annual sales to
Wolverine’s top line in 2013, pushing its total
revenues to more than $2.5 billion.
But some on Wall Street and in the footwear
industry are wondering if Wolverine will be able
to pull off an acquisition this large. The deal will
create a new level of complexity as Wolverine
works to simultaneously integrate the acquired
operations of Collective Brand’s Performance
+ Lifestyle Group (PLG) and its four brands:
Sperry Top-Sider, Saucony, Stride Rite and Keds.
And for the first time in memory, Wolverine will
find itself heavily leveraged with the mountain
of debt required to pull off the “transforma-
tional” transaction that will vault it to the upper
echelon of global shoe companies. Wolverine World Wide CEO Blake Krueger and the company’s management team are focused on integrating the company’s largest ever acquisition and one of the
“We’re a pretty conservative Midwest com- largest deals in the history of the footwear industry. “The dovetail strategic fit for us is almost perfect,” Krueger said of the deal that adds four brands to Wolverine’s
pany,” Wolverine CEO Blake Krueger told MiBiz. portfolio and more than $1 billion in annual sales. The acquisition positions Wolverine — with projected 2013 total revenues of more than $2.5 billion — as the third-
“For years, we’ve operated with basically no debt largest global footwear company behind only Nike and Adidas. PHOTO: JEFF HAGE
and a pretty large cash surplus, but this was obvi-
ously such a strategic opportunity for us. So we
made the decision to make a break from our past “The fact that Collective Brands went for so distribution and entry into new market seg- come from markets outside the United States.
mode of operating.” much money — and that Wolverine had to take ments such as kid’s and athletic footwear. The The Sperry brand, for example, is one of the
That break has given pause to some on Wall on debt to complete the deal — shook up the PLG brands, which are sold primarily in the most popular casual shoe brands domestically
Street. industry,” she said. United States, should see tremendous benefit with an estimated $330 million in annual rev-
“Without a doubt you have integrated smaller from Wolverine’s international sourcing and enues, but only 4 percent of its sales come from
brands successfully in your portfolio,” said ana- distribution networks, as well as its disciplined outside of North America.
lyst Diana Katz from Lazard Capital Markets FILLING WHITE SPACE approach to financial management. By comparison, Wolverine marketed nearly
on a conference call with the company, but she While there are questions, few argue with the “The dovetail strategic fit for us is almost two-thirds of its units in international markets
and others asked how Wolverine would be able strategy behind the deal, which saw Wolverine perfect,” Krueger said. “They’re brands we know last year, and international revenues accounted
to handle the integration of such a large acqui- partner with two private-equity firms on the intimately, formerly as some direct or indirect for more than 40 percent of total revenue.
sition. In fact, many analysts are taking a “wait complex bid. competitors of ours. We know that we can help “Our international scope is still really one of
and see” attitude about this deal, said Michelle From a strategic standpoint, the PLG them accelerate their current growth path.” the envies of the industry,” Krueger said. “After
Tay, business editor of industry trade publica- acquisition gives Wolverine added size and The first acceleration pedal is international. 50 or 60 years, operating with different cul-
tion Footwear News. negotiating power, as well as expanded retail Less than 10 percent of PLG’s footwear sales tures, promoting and growing brands on a global
basis — it’s kind of in our DNA now.
“So we know we can take these (new) brands
international and give them some pretty imme-
Stiles is taking care of business. diate global mass and global extension.”
There’s also tremendous upside for improv-
ing PLG’s profit margins, which are about
40 percent lower than what Wolverine earns,
Krueger said.
“We can win just by improving their profit-
ability up to our levels,” Krueger said. “We’re
pretty good operators as a company and consis-
tently deliver healthy profit margins. We can
bring them up to our profitability level over
We helped Energetx innovate with breakthrough technology. time.”
Energetx Composites has successfully translated its deep manufacturing expertise to capitalize on opportunities in the growing KMT RoboTrim
Wolverine should also see benefits. With the
wind-energy industry. To procure the specialized equipment needed, they turned to Stiles. Key among the Holland, Michigan- addition of the four PLG brands into its portfo-
based company’s acquisitions was a highly advanced, fully automated, KMT root end cut and drill system for processing the lio, the combined company expects to sell 100
150-foot-long, 9-ton blades used by utility-scale wind turbines. The system uses breakthrough drilling technology that’s 25%
million pairs of shoes and units of apparel per
faster than other systems and offers patent-pending automatic blade-location technology—drastically reducing set-up time and
maximizing productivity for this growing enterprise. year around the globe — up from the 52 million
units Wolverine sold in 2011. The company’s
Find out how Stiles can help you take care of your business. Call Stephan Waltman at 616.698.7500 collective mass will allow it to get better pricing
or email swaltman@stilesmachinery.com. stilesmachinery.com from its suppliers, and its increased volume will
help spread out logistics costs, Krueger said.
5. Visit www.mibiz.com MiBiz • OCTOBER 15, 2012 5
“It immediately makes you important to Opportunity Fund LP and Blum Capital
“At 100 million pairs a year,
everyone, and by everyone, I mean the factories Partners LP, jointly acquired the remaining por-
that make footwear around the world,” he said. tions of Collective Brands, Payless ShoeSource
“At 100 million pairs a year, we carry a very large and Collective Licensing International.
collective pencil.”
The acquisitions also fill “white space”
“We were able to end up with the brands
we wanted and not touch the Payless business, we carry a very large
collective pencil.”
in Wolverine’s portfolio, giving it entry into which is an entirely different kind of lower-mar-
markets where it lacked a significant presence ket business,” Krueger said.
— children’s, athletic and women’s footwear, The transaction required Wolverine to take
in particular — and a significantly larger foot- on approximately $1.3 billion in long-term debt,
print of company-owned retail stores. Krueger which was raised through a bank syndicate, and BLAKE KREUGER, WOLVERINE WORLD WIDE
expects Wolverine’s existing brands to benefit an offering of corporate notes. The company
by gaining immediate entry into the “better- secured a $1.1 billion credit agreement with a
grade” domestic children’s footwear market syndicate of 20 banks, including JP Morgan
through Stride Rite’s 300 retail stores. Chase, Wells Fargo Bank, Fifth Third Bank and
That’s a market where Wolverine had “pock- PNC Bank. The company also offered $375 mil- ramped up its pace, licensing Patagonia and from 2005 to 2011. Having Jeppesen on board
ets of success” but never really had the infra- lion in senior notes, which will be used to fund acquiring Sebago, Chaco and Cushe. helped in the acquisition because he ran PLG’s
structure to make a significant play, Krueger the purchase and pay off PLG’s debts. Every one of them has been successful, operations and sourcing and was familiar with
said. The notes offering was oversubscribed, said Krueger claims. its brand leaders.
“It’s a different business,” he said. “(The Krueger, attributing the demand to a strong “We tend to be a pretty disciplined team “We’ve been trying to lasso him for years and
stores) will also give our existing brands’ chil- national market for corporate debt as well as the when it comes to acquisitions and brands. were fortunate to do that six months or so before
dren’s business access to factories (and) product company’s track record as an operator. When you look at our history with Sebago, with the acquisition was announced,” Krueger said,
development expertise that we frankly didn’t “I think the strategic fit, the strategic story, Caterpillar, with Harley-Davidson and with cracking a smile. “He’s made huge contributions
have in sufficient depth before.” our reputation for being pretty consistent and many of our other acquisitions, every one of already to our company.”
PLG’s retail stores will effectively double good operators of the business sold very well,” those has been a success story. Frankly, (that) is
Wolverine’s retail sales as a percentage of rev- Krueger said. “We had a very high confidence unusual to have a period of sustained successes
enue from 7 percent to 14 percent from brick and level.” over a period of years.” OFF THE DEAL PATH
mortar stores and e-commerce websites, it said The poster child of that successful acquisi- The final driver of the company’s integration
in a filing with regulators. Following the acqui- tion strategy is Merrell. The company acquired strategy is focus. While the company has built
sition, Wolverine will operate about 425 stores, PROVEN TRACK RECORD Merrell from the Outdoor Division of Sports its business through a series of acquisitions and
mostly in the United States. Based on Wolverine’s track record of acquiring Holding Corp. for $17 million in cash in 1997. brand licensing agreements, it knows it will
“In today’s world, we believe you need to con- and integrating brands and operations over the The prior year, Merrell had sales of approxi- have to step back from the hunt for other deals
trol a certain percentage of your destiny at your past 18 years, the confidence may be well placed. mately $27 million. Today, “Merrell’s well over and pour all its effort into integrating the PLG
own retail,” Krueger said. “It brings you closer Founded in 1883, Wolverine operated with just $500 million in sales,” Krueger said. business.
to the consumer. It lets you present your brands three main brands — Wolverine, Hush Puppies “When we acquired Merrell, it wasn’t a very Because the companies shared a similar
in the best possible way and actually creates a and Bates — for most of its existence. Beginning big brand, and it wasn’t a very good business,” he culture and because the acquisition process
healthier wholesale business.” in the early 1990s, though, Wolverine began to said. “When we were able to plug and play that has gone on for so long, Wolverine’s execu-
license and acquire other brands, starting with a into our international distribution network, we tives estimate the PLG business will be fully
license with Caterpillar Inc. for CAT Footwear were able to get some fairly accelerated growth.” integrated into Wolverine by the end of the
COMPLEX DEAL, EASY DEBT in 1994 and, later, the acquisition of the Merrell calendar year.
Wolverine has already cleared a significant brand in 1997. A year later, Wolverine acquired “There are certainly some projects and some
hurdle with the transaction: getting it done. the global license for the Harley-Davidson foot- THE PARTS OF THEIR SUM information services that will roll on into 2013,
The company announced the acquisition had wear brand. Beginning in 2003, the company Wolverine’s management plans to use the same but in a lot of areas, the integration will be sub-
cleared last week, two months later than origi- playbook for integrating the PLG brands. stantially complete this year,” Krueger said.
nally anticipated and more than a year after While the size does far eclipse any other deal With the company taking on significant
Collective Brands first put itself up for sale. in Wolverine’s history, the integration process financial burden, Wolverine will be out of the
“It was about the longest process I’ve heard
of in recorded M&A history,” Krueger said with
Brand (new) revenues will be based around the parts rather than their
sum. The four individual brands that make up
acquisition market for about two or three years
as it pays down its debt.
a laugh. The four brands acquired by Wolverine the acquisition are of a size that Wolverine is “This acquisition and our existing business
Collective Brands first put itself on the mar- World Wide will add more than $1 billion used to digesting, he said. are going to generate a lot of cash. Obviously,
ket in August 2011, after shopping itself quietly in revenue to the Rockford-based footwear “Although this is a big business … you have we’re going to first use that cash to invest back in
for a few months. Wolverine had reportedly been maker’s results in 2013. In 2011, the four to also remember it’s comprised of four differ- our brands, but then we’re going to take the cash
eyeing the footwear brands “for a long time,” recently acquired brands topped the billion ent brands. These are all brands of a size we cur- that’s generated and pay down the debt,” Krueger
according to an industry source, but was not dollar revenue mark. rently have,” Krueger told analysts in a confer- said. “But we’ll always be out there looking for
interested in the Payless ShoeSource retail busi- ence call. niche brands, maybe a smaller bolt-on acquisi-
ness. The company and its advisers recruited The CEO argued that Wolverine does have tion. After a couple of years, we’ll certainly be in
two private equity firms with retail portfolios experience integrating brands the size of the a position to consider a larger acquisition.”
to make the deal happen. The group decided to Sperry Top-Sider: $330 million individual PLG brands, which in 2011 ranged in Krueger does admit that there is one thing
bid for CBI together and divide the respective revenues from $80 million (Keds) to $335 mil- that keeps him up at night related to the massive
businesses. While it sounds simple, the three- lion (Stride Rite). He said the company can suc- acquisition.
party“club bid” aspect of the transaction added a cessfully integrate the PLG business by using “The thing that really keeps me up is try-
layer of complexity, said attorney Tracy Larsen Saucony: $270 million the company’s usual formula: “time, people and ing to prioritize all the opportunities in front
of Barnes & Thornburg LLP, which represented effort.” of the company right now,” he said. “When you
Wolverine. Negotiating terms among the three “There is always risk,” Krueger told analysts. look across our existing portfolio of 12 brands,
parties and Collective Brands, and the subse- “It probably always takes more time and effort the global opportunities for these four (newly
Stride Rite: $335 million
quent need to obtain audited financials on the than you think going into it, but we are pretty acquired) brands, the fact that our company has
pieces of the Collective Brands business created good at execution.” become a one-stop shop for international dis-
the bulk of delays, he said. Wolverine also had an insider’s perspective tributors and retailers, the collective power of
In the final transaction structure, Wolverine on the PLG business. About six months before these 16 brands…(is) almost unlimited.
Keds: $80 million
acquired the PLG brands and business for the acquisition was announced, Wolverine hired “For me, right now, and the management
about $1.24 billion, while two San Francisco- SOURCE: WOLVERINE WORLDWIDE ANALYST PRESENTATION Mike Jeppesen, who served as Collective Brands’ team, it’s really a question of prioritizing our
based investment firms, Golden Gate Capital senior vice president of design and sourcing efforts, time and resources.”
H
HISTORY OF WOLVERINE WORLD WIDE BRANDS Saucony
Sperry Top-Sider
Patagonia Stride Rite
Hush Puppies HyTest Cat (Canada) Keds
Wolverine Hush Puppies Harley- Merrell Track ‘N Trail Wolverine Chaco Colombia JV
Bates Cat (U.K.) Merrell Davidson (Europe) Cat (Europe) Sebago (Canada) Cushe India JV
1883 1994 1996 1997 1998 2001 2002 2003 2005 2009 2012
6. 6 OCTOBER 15, 2012 • MiBiz Visit www.mibiz.com
UNDERWRITTEN BY:
FORWARD Highlighting local business people giving back to the community.
To nominate someone for a Pay It Forward feature, email editor@mibiz.com.
PAY IT
Pete Brand
After completing an assignment in sixth grade that had him rifling through the help wanted ads in hospitality services to families in crisis,
the local newspaper to find the job of his dreams, Pete Brand knew he wanted to be an entrepreneur. Brand is committed to empowering people
As the co-founder of Mindscape at Hanon McKendry, he is constantly engaging businesspeople so they can get their lives on track.
with startup ideas. Using his expertise to help others launch their own businesses, Brand goes one “It’s really easy to watch the guy get out
Co-founder, Mindscape step further, putting confidence behind each person he works with in and out of the office. of his BMW wearing a slick suit and think
A
that’s what success looks like,” he said.
at Hanon McKendry fter co-founding Mindscape in
2001, Brand has overseen his
With those days in the rear view, Brand
is using his experience to help others
To Brand that’s not the kind of inspira-
tion people need. Instead people need to
company’s growth year after year. bounce back. look inward and promote their strengths.
But the momentum he is working with “What drives me is helping people real- “If I can help people realize happiness
now wasn’t always behind him. Like many ize they are significant,” he said. “Whether and not sell out and spend all of their
people, Brand battled his share of personal you’re homeless or a multi-billionaire, time and effort doing something they
issues, including the not-so-distant people’s biggest fear is not mattering.” hate just to pay the bills, that’s my goal,”
passing of a loved one and the financial Through his work mentoring entrepre- he said.
insecurity of being an entrepreneur with neurs or his efforts on the board of Family
a dream. Promise, an organization that provides Interview and photo: ELIJAH BRUMBACK
8. 8 OCTOBER 15, 2012 • MiBiz Visit www.mibiz.com
Manufacturing
Out-of-state rack maker plans new Grand Rapids plant
By Carl Dunker | MiBiz million, has around 175 employees nationwide.
cdunker@mibiz.com Originally a manufacturer of racks for use
in electroplating, the product line at Associated
GRAND RAPIDS — A Chicago-based manu- Rack Corp. expanded in recent years to include
facturer plans to open up shop in Grand Rapids fixtures for powder coating as well as protective
to be close to a key customer, while riding the coatings, material handling products and heat-
wave of the automotive recovery and a successful treating units.
diversification strategy into growth industries. Currently owned by Bill Faulman, a descen-
Associated Rack Corp. just purchased a dent of its founder, the company also diversified
more than 10,000-square-foot facility on Kraft its offerings to attract business from burgeon-
Avenue in Grand Rapids, where the company ing industries, namely the aerospace sector,
plans to open a new plant to make racks, which Bauer said. That’s led to successful bids on con- Associated Rack Corp. just purchased a facility in Grand Rapids to open a new manufacturing operation. The
its customers use in processes ranging from tracts from companies including aerospace $11 million company makes racks used in powder coat paint lines and other manufacturing processes. The
powder coating to electroplating. giant Boeing, he said. site joins the company’s other facilities in Illinois and Florida, but will service local customers. COURTESY PHOTO
The move into West Michigan follows This diversification strategy is partly to
an increase in business at many of the firm’s thank for the company’s survival of the reces- trade school, but are developed over time through “Think about an artist or a sculptor, some-
local customers, including automotive sup- sion, Bauer said, and helped make possible its on-the-job experience. He said he needs more can- one who can look at a block of marble and see
plier Lacks Enterprises Inc., said Don Bauer, move into Michigan. didates that think like people who grew up around what’s inside of it,” Bauer said. “You have your
Associated Rack’s engineering manager. “We try to diversify what we can do in order farms and have a natural ability to find solutions prototype guy and you tell him you need certain
The company has initial plans to hire up to to provide more services to our customers,” to products and can develop new products and pieces held a certain way, and he has to be able
20 people at the site, he said. said Bauer. “Business was really kind of a roller prototypes that make business easier. to see how to make it work, and then form and
“Things are much better this year than in the coaster in the past six years, especially in the “It’s a skill level that you can’t just go to shape the metal.”
past four,” Bauer said. “We decided six or eight lows. We really were kind of just holding on and a community college and get someone who While Associated Rack also expects its
months ago that there was enough business for avoiding layoffs.” has two years of class experience,” said Bauer. employees to have hard skills and advanced
us to move into the Grand Rapids area.” As the company enters the West Michigan busi- “Oftentimes, those are skills that you find in training in welding and fabrication, the most
The real estate transaction was brokered by ness environment, Bauer sees staffing as the larg- someone like a farmer, because farmers are important quality that the company is looking
Pamela Collins, a Grand Rapids-based broker at est obstacle to the expansion plans. He said finding always having to find ways to make things work. for in its people is that ability to see the finished
Callander Commercial. qualified candidates to fill positions is becoming We actually have a few guys who have that back- rack, how it will be used and the steps needed to
The new Grand Rapids location will be increasingly difficult, for a variety of factors. ground, who worked on a farm when they were make it, he said.
the company’s eighth, and it’s first location “Some of the workforce needs that we have younger.” Bauer knows that takes time, noting that
in Michigan — at least in a handful of years, are for welders, especially experienced ones,” Because the company is often manufacturing the company will work with the right person to
said Bauer, who noted the company’s founders said Bauer. “I’m not talking about somebody racks that are custom-built to hold a specific part develop those traits.
started the company in the state 60 years ago. who can weld a pipe or a seam, I’m talking about and fit into a defined manufacturing process, “We’re looking for people who have the abil-
Currently, Associated Rack has locations serv- doing intricate, precision TIG (tungsten inert Associated Rack especially values employees ity to think carefully through a problem and
ing the southern states and the western U.S., gas) welding.” who can envision the entire manufacturing pro- form and bend metal by hand,” Bauer said. “You
with two plants each in Florida and Illinois. Bauer said these skills are not the type that cess that goes into a part and then design a rack have to find someone who has the experience and
The company, with annual revenues nearing $11 can be easily picked up at a community college or to fit that whole production cycle, Bauer said. incubate that.”
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