“TorQuest realized the importance of quality and service to our customers. They helped us grow without sacrificing either.”
The controlling shareholders of Array, a leading Canadian provider of high-end visual merchandising solutions for top cosmetic brands, were looking to sell the business because it was no longer core to an attempted roll-up strategy. We looked at it initially, liked the business, but we remained disciplined on our view of value and didn’t move forward in their process.
Months later, the process was broken because other interested parties didn’t live up to expectations. John Fielding, a co-founder who had retained an interest in Array and an acquaintance of one of our partners, asked us if we were still interested at our stated value. We said yes and closed the deal at that price. John liked our investment thesis and increased his stake, getting involved in an advisory role. Longtime CEO Tom Hendren also increased his investment in the company.
Together, we strengthened the management team under Tom, invested to improve operations and its international supply chain, and accelerated development of new customer opportunities. The result? A return to robust top-line growth and dramatic improvement in EBITDA, two years ahead of plan. After testing the market, we sold the business for an excellent return to The Carlyle Group. Tom, John and the management team have remained with the company to run the business as it continues its expansion strategy.