Mentor Partners-Sponsored
Management Buyout of Adco, Inc.

Adco Inc. is a manufacturer of specialty detergents and chemicals for the dry cleaning industry that had been family owned for over 100 years. The company's CEO and familial head of the business had positioned the company quite well within its niche; but, he found growth was becoming harder to come by. Investment and business decisions were drawn-out affairs, which was the result of an ownership structure scattered among several generations of family members

Mentor Partners backed this CEO and acquired control of the company. The CEO was able to reinvest half his proceeds from the sale and almost double his ownership interest. More importantly, he became more empowered as a CEO backed by Mentor Partners. Mentor's key focus was to work with the CEO to wring greater value from Adco's existing operations, first by broadening its base within its niche and then by launching an aggressive growth strategy focused on leveraging the company's distribution channels

The base broadening plan included Mentor's cultivation of strategic acquisitions. And to expand its markets in general, Adco broadened its product line to include more than just specialty detergents and chemicals. Adco added new manufacturing services as well, something that was heretofore difficult for the CEO to accomplish either due to cultural or financial constraints. Mentor also suggested equity incentives across the organization to encourage a culture of grow, which was well received by management

Mentor's involvement began to bear fruit almost immediately. EBITDA for the first six months of Mentor's participation was higher than any previous full year - as new manufacturing services were offered for the first time in the company's history. And as word of the ADCO renaissance began to spread, multiple opportunities for attractive follow-on acquisitions developed and were brought to the company, further validating the Mentor strategy. www.adco-inc.com