The Company designs, manufactures, and markets a full line of compressors, condensers, heat exchangers, and related equipment for industrial refrigeration, air conditioning, and cooling systems in various industries.

Due to production problems and changing sales mix, the Company had experienced losses for the previous five years.  Cash flow was further diminished by an ESOP redemption program that severely drained remaining cash resources.

After assessing the mature, fragmented and cyclical industry, Fort Dearborn Partners analyzed key product lines to identify strong competitive advantages on which the Company could capitalize for future growth and viability.

FDP initiated several profit improvement approaches that included reducing personnel, eliminating overtime, bringing certain manufacturing technology in-house, increased prices, and identified new geographic sales opportunities.

All aspects of working capital were improved, which immediately reduced the Company’s dependence on the line of credit.

Overall, annual profit improvement was $2.5 million. 

New Board of Director members were recruited, and a management-by-objective plan was established, to ensure ongoing accountability and focus on key strategies.