Harvest Manor Farms
Industry
Food & Beverage
Size
$175 million
Expertise
Interim Management
Assignment
A multibillion dollar holding company had established an integrated snack food and nut producer and seen their revenues grow substantially, but the company had an operating loss of almost $32 million. The business was a drain on cash, not desirable to hold on to as a portfolio company and with its poor performance was an unattractive business to sell.
Actions
MainStream was engaged and assumed complete responsibility for management of the Company. A complete review of every business process at each location was completed and a business assessment was completed for the holding company regarding the long term viability of the business. MainStream built a plan that quickly allowed us to study, listen, learn, plan, implement and adapt. The first step was to determine what segments were strategic to the Company's future. The assessment served as a catalyst toward actions that were required for the long term survival of the business. Four of the business operations were sold, fixed costs were reduced by more than 70% and the Company was able to maintain their business relationships with their key retail customers.
Results
The Company grew at twice the industry average and the business operations were steady and predictable. They went from losing $32 million to where they generated EBITDA in excess of $6.5 million. While the snack food company continues to operate today, our Client, the Holding Company completed a sale of the Company at a multiple they found attractive.