Fishing Reel and Rod Manufacturer

Division: Phoenix Management Services, Phoenix Capital Resources


Client

Our client was a family-run, $50 million Manufacturer of High-end Fishing Reels and Rods headquartered in Philadelphia, PA.

Problem

Overseas competitors began to encroach on the Company’s dominant market position and slowly acquired larger pieces of its market share. High manufacturing costs and price sensitivity began to chip away at profit margins. Due to a strong family loyalty toward the business, major decisions were deferred and the future of the Company came into question.

Solution

Phoenix Management Services analyzed operations and concluded that manufacturing costs could be controlled by consolidating manufacturing and outsourcing the production of a high percentage of component part manufacturing. During this reorganization, a strategic industry buyer was identified and a transaction was entered into that included the sale of our client’s business and the assumption of all of its liabilities.