YORK Label

TOP CALIBER CEO

Wind Point formed YORK Label ("YORK”) in partnership with CEO Rich Egan.  Prior to YORK, Rich was CEO of Data Documents, the fourth largest forms and label printer in the United States. As CEO, Rich rationalized the shrinking business forms division while investing in the higher growth label division. Prior to becoming CEO, Rich was CFO of Data Documents. Prior to Data Documents, Rich spent 27 years at Ringier America, an $800 million commercial printer with 4,000 employees and 12 manufacturing locations. During his career at Ringier, Rich held a variety of senior executive positions, including Senior Vice President and Chief Information Officer, Vice President Corporate Re-Engineering and Vice President Corporate Controller.

UNDER-MANAGED MIDDLE MARKET BUSINESS

York Label Holdings (“YLH”) and Industrial Label Corporation (“ILC”) were two competing label companies. YLH, based in York, Pennsylvania, was a leading manufacturer of pressure sensitive labels used in the consumer products, entertainment, direct mail and healthcare markets. ILC, based in Omaha, Nebraska, produced labels used in the food, beverage and consumer products industries. Wind Point acquired both companies simultaneously, under a common debt facility, and created YORK Label. Wind Point acquired YLH and ILC for a total purchase price of $119 million, or 6.2x pro forma TTM EBITDA.

At the time of Wind Point’s acquisition, both YLH and ILC lacked CEOs.  YLH’s CEO was recently terminated by its prior owners and ILC’s founder was looking to retire but had no successor. Further, ILC had no senior manufacturing leadership and, as a result, operated at margins well below industry averages.  In addition, neither management team had experience identifying and integrating acquisitions. Despite these shortcomings, both YLH and ILC maintained strong customer relationships and excellent industry reputations.

PATH TO VALUE CREATION

Wind Point worked closely with Rich Egan to identify and implement the following path to value creation at YORK:

• Realize purchasing synergies.  Prior to Wind Point’s ownership, both YLH and ILC purchased similar raw materials but at different prices - YLH received a 4% supplier rebate while ILC received only a 2% supplier rebate. During Wind Point’s ownership, YORK purchased materials at the lowest common price, applied YLH’s 4% rebate to ILC purchases, renegotiated a more favorable contract with its primary supplier, and generated $1 million in raw material savings.

• Eliminate duplicate expenses.  Prior to Wind Point’s ownership, YORK had redundant personnel and overhead expenses between the businesses. Under Wind Point’s ownership, YORK eliminated duplicate positions in sales, R&D, accounting and administrative departments, consolidated all acquisitions onto one financial reporting platform, and generated $1.5 million in annual savings.

• Improve plant operations.  Prior to Wind Point’s ownership, YORK lacked senior plant management capabilities at ILC, had a poor facility layout, and practiced limited application of lean manufacturing principles. Under Wind Point’s ownership, YORK hired a new ILC plant manager, doubled production efficiency at its Omaha plant, and secured $2.1 million of annual productivity savings.

• Increase sales to food, beverage, consumer and pharmaceutical markets.  Prior to Wind Point’s ownership, 25% of YORK’s revenues were from low margin, declining direct mail and CD/DVD markets, and it was the fifth largest wine label producer and had no revenues to the pharmaceutical market. Under Wind Point’s ownership, YORK increased sales to core food, beverage and consumer products customers by 14% and was awarded new business with Tyson, P&G, Gallo, Colgate, L’Oreal and Unilever, reduced direct mail and CD/DVD to less than 8% of revenues, became the largest wine label producer in North America, and acquired the  leading pharmaceutical label provider.

• Complete add-on acquisitions.  Prior to Wind Point’s ownership, YORK was in a highly fragmented market – over 6,000 U.S. label vendors and no acquisition experience among the incumbent management team. Under Wind Point’s ownership, YORK acquired four companies totaling $26.3 million of EBITDA for a weighted purchase price of 5.8x TTM EBITDA.

COMPANY FINANCIAL RESULTS

Wind Point grew revenue by 99% and EBITDA by 169% during ownership.