Manac, Inc. is a leading manufacturer of flatbed trailers, low-bed trailers, forestry trailers, chip trailers, dump trailers and dry-vans with headquarters in St Georges, Quebec. Manac is Canada’s largest semitrailer manufacturer and market share leader in most of its targeted segments.
Acquisition Dynamic / AIP Differentiation
- AIP was approached directly by Manac’s family owners and majority shareholders who were looking for a strategic partner to add value to their operations with Lean manufacturing principles and strategic procurement initiatives
- Favorable End Market Growth
- Leading Canadian Market Participant With a Premier Brand, a Strong Engineering Focus, a Large Installed Base, a Diverse Distribution network and Efficient and Flexible Plants
- Attractive Design and Assembly Business Model with Low CapEx and High Return on Capital
- Opportunity for Significant EBITDA Improvement using AIP Operating Disciplines –comprehensive Lean implementation, strategic procurement savings, increased market share within targeted specialty segments, and aftermarket sales
Value Creation Accomplishments
- Reduced direct labor in US Plants by 25-40% through the exercising of Lean manufacturing principles: implemented single piece flow manufacturing, consolidated production shifts, and decreased unit labor costs for an aggregate direct savings of C$4 million.
- De-bottlenecked, Manac USA production, to increase capacity by 157% and 50% in two Missouri facilities and increased production to meet average demand across cycle with a focus on new product introductions in the U.S.
- Leveraged Procurement across the supplier base, and kick-started joint sourcing projects including tires, aluminum and paint for an aggregate savings of C$4 million
- Optimized aftermarket business with value pricing, targeted dealers and U.S. service centers
- Integrated a corporate carve-out as an add-on acquisition that increased market share and introduced complementary products
- TTM Revenue increased from C$254 million at acquisition to C$392 million at the time of sale and EBITDA doubled from C$13 million at acquisition to more than C$26 million at the time of sale
Sold to a consortium of financial buyers and certain existing shareholders in August 2015.