Case Studies | AXIA

AXIA, Inc.
Houston, Texas
Manufacturer, marketer, and distributor of construction tools, formed wire products, industrial bag-closing equipment, and flexible conveyors. Operates through three business units: Ames, Nestaway, and Fischbein.

Investment date:	July 1998
Transaction value:	$155 million
Sterling team:	John Hawkins, Gary Rosenthal

Background
AXIA's niche market leadership presented significant opportunities to create revenue and EBITDA growth. By leveraging the company's overhead and financial structure, and by capitalizing on the amount of free cash flow, we could acquire other niche market businesses or reduce debt.

Sterling Impact
Sterling supported senior management in driving operational changes and revenue growth. Business unit Ames' leading market position and strong brand name were enhanced with complementary acquisitions. Another strategic acquisition broadened the Fischbein unit's product line and improved the efficiency of its distribution channels. Numerous operational improvements included global sourcing of raw materials and facility rationalization.

Outcome
Under Sterling ownership, AXIA experienced meaningful improvement in revenue, gross margins, and EBITDA. After only two years of ownership, AXIA was sold to Cortec.

Revenue growth	$30 million
Gross margin improvement	5.6%
EBITDA improvement	41%
Add-on acquisitions	3
Sterling return on investment	3x