[Newspaper]
Publication: Rochester Democrat and Chronicle
Rochester, NY, United States
p. 1, 6B
New Owners Have Big Plans for Lapp
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| Group leader Ed Hodgdon of Warsaw stamps line posts at Lapp Insulators in Le Roy on Friday. |
Sales, Job Growth Foreseen at Le Roy Manufacturer
MATTHEW DANEMAN
Staff writer
The management team at Lapp Insulators LLC last year put together a plan to grow the company and presented it to the owner, the Andlinger & Co. investment firm.
"They said, 'we're very happy with where Lapp has gone (but) we think other firms are better-suited to execute this plan with you,' " said Rob Johnson, chief operating officer of the Le Roy-based electrical insulation maker.
So after vetting dozens of investors, executives at Lapp have signed a deal with Quadriga Capital, a German private equity firm. Financial terms of the management and Quadriga buyout of Lapp were not disclosed Friday.
The deal requires some European regulatory approvals, which should come by the end of September, Johnson said.
New ownership's goal is ambitious: grow by as much as 60 percent in three to five years.
The company employs about 1,100 globally, including 125 people in Le Roy, in the manufacture of ceramic electrical insulators used in such applications as barriers between aluminum or copper power transmission lines and the power line towers. The company also has production sites in Germany, Poland, Romania and China.
"We went through the recession and struggled some, but we're coming out of that strong," Johnson said. The Genesee County manufacturer sees growth opportunities in the United States and particularly in fast-growing international markets.
Lapp's annual sales are close to $180 million, and with Quadriga's financial backing the hope is for revenue to climb to $250 million to $300 million by the middle of this decade. The company was No. 10 in the most recent Rochester Top 100 ranking of the region's fastest-growing private companies.
The growth plans include increased sales of products made in Le Roy, which should result in increased employment there, Johnson said.
Quadriga's portfolio also includes German outdoor clothing and gear company Jack Wolfskin and German call center operator Tectum Group.