Business Leaders Network

Today, Mold Masters is a world-leading supplier of specialty components to the plastics industry, with an unrivalled reputation for technological excellence, and clients in over 40 countries. Originally a family owned business, the founders recognised the need to strengthen the company by maximising its global growth opportunities. 3i’s investment in 2007 paved the way for international expansion.

Following 3i’s investment, Mold Masters required an experienced industrialist to provide strategic leadership and capitalise on expansion opportunities. 3i introduced Hamdi Conger, a long standing member of our Business Leaders Network and existing Chairman of  AESSeal, and past Chairman of Hyva , Norma and Fabricauto: all 3i investments. Hamdi’s sector knowledge and experience as both Chairman and industry advisor, combined with his expertise in developing markets and change management, made him the ideal candidate to help realise Mold Masters’ ambitions.

Hamdi was appointed Chairman in 2007 and began evaluating the opportunities for growth. Under his leadership Mold Masters has experienced significant organic growth and completed several add-on acquisitions, expanding the company’s product offering and geographical reach into developing markets. The business now operates manufacturing facilities in Germany, Japan, the United States, Canada, India, UK, Brazil and most recently expanded its China facility three fold. Ken Hanau, Managing Partner, 3i North America acknowledges the significant role Hamdi has played in the business’ development:

“Hamdi has been an integral part of every aspect of the investment all the way from due diligence through to being the consummate Chairman, setting the vision, managing shareholder expectations and helping drive management along the strategic plan.”

The success of Mold Masters’ international transformation is evident in the top line. Since 3i’s investment, revenue has increased to approximately CAD 250m in 2011. What is it about Hamdi’s approach that enables him to lead companies to exceptional results?  In his own words: “When I want to grow a company, the first thing I do is set the vision and strategy for the next five years and communicate it effectively throughout the organisation at every level.  We then train the key personnel in how to manage change and deliver the strategic objectives, followed by assessing where the business needs complimentary resources to deliver the Vision.”

The strength of the Mold Masters brand and the development of the company’s global footprint have ensured that the company is well positioned to take advantage of future opportunities to expand its customer base.   

Across Europe, testing, inspection and certification (TIC) is a fast-growing €15bn sector, characterised by long-term customer contracts and the need to meet legal requirements.

In 2006, Alan Giddins, 3i’s Global Head of Business Services, identified the sector as an investment priority.  “The attractions of TIC were clear and we wanted to commit significant resources to it over a number of years,” he says.  “All we needed was a highly credible industry leader to help us make the most of the opportunities.  That leader was Ad Verkuyten.”

Having just led the transformation of Röntgen Technische Dienst, a Dutch TIC group, Ad was well placed to help 3i achieve its ambitions in the sector.  Following a review of over 40 European TIC businesses, 3i invested in Inspecta in June 2007.  The company is based in Finland and also has significant operations in Sweden and the Baltic states.

As Alan observes, “Ad gave us the perfect capability to assess a range of TIC opportunities.  When we undertook due diligence on Inspecta, he took part in every meeting and introduced us to new sources of specialist skill.  He wasn’t simply an adviser – he was right at the heart of the process.”

Following the acquisition, Ad became the new Chairman of Inspecta and initiated a range of measures to position the company for growth:

• Leading the recruitment of a new CEO and CFO;
• Streamlining the company’s existing operations to create a more integrated cross-border structure;
• Strengthening Inspecta’s M&A capabilities.

Ad’s impact on the business quickly fed through to the bottom line, as Alan notes: “In the first year alone, Ad’s leadership grew profitability by 20%,” he says.  “Equally importantly, Ad has positioned Inspecta to expand into additional European markets, and achieve its goal of being one of the most profitable, capable and respected businesses in the pan-continental TIC sector.”

... its structure and enter new markets.

Skilled leadership and a close partnership with 3i provided French transport company Keolis with the financial and relationship resources it needed to streamline its structure and enter new markets.

When 3i acquired a majority shareholding in French transport operator Keolis, it was clear that skills in public-private partnership would be key to the company’s success: its core business was operating buses for local authorities, and state rail company SNCF remained a major shareholder.

Michel Bleitrach, a 3i Senior Adviser at the time, was appointed CEO in 2004.  With a background of leadership roles in utilities giant SUEZ, he brought an intimate understanding of relationship-building and contract negotiations in the French public sector.

To complement Michel’s skills as CEO, 3i introduced two other business leaders to the Board.  Michel Lamboley joined as CFO, his financial skills proving invaluable in the subsequent refinancing and restructuring of Keolis.  Jean-Michel Mauvilly came on board as a Non-executive Director and helped to cement strong shareholder relations through his strong relationship and board role with another SNCF company.

To meet the challenges posed by domestic restructuring and international growth, 3i and the Keolis board undertook a structured review of the management capabilities within Keolis to identify where there were skills gaps that were subsequently filled by an infusion of fresh leadership talent.

The partnership between business leaders and 3i helped Keolis to become a streamlined operator winning major new contracts at home and abroad.  During 3i’s 2004-06 participation, Keolis’s turnover rose to more than €2.5bn, its profits rose by a third and its value almost doubled to €1.075bn.  Today the company’s transformation is regarded as one of the great success stories in France.

When 3i’s investment team in China opened their dialogue with highly successful fast-food chain Little Sheep, Nish Kankiwala was a vital element in building 3i’s credentials.  As the former President of Burger King International, his industry knowledge was second to none.

By flying to Beijing to spend several days with Little Sheep’s management team during the early discussions, Nish demonstrated 3i’s commitment to the relationship and the deep levels of expertise on which 3i could call – a vital factor in the eyes of the company’s founder Zhang Gang, who was being actively courted by a wide range of potential partners.

Following 3i’s US$20m investment in Little Sheep in mid-2006, Nish joined the board as a Non-executive Director and made an important contribution to the company’s growth, drawing on the deep understanding of consumer behaviours he gained at Unilever and PepsiCo.

Nish’s global experience was particularly valuable to Little Sheep as it streamlined its franchise system, and identified the right balance between international expansion and the considerable opportunities in the domestic market.

During the first 18 months of 3i’s investment, Little Sheep achieved year-on-year revenue growth of 40%, a remarkable degree of success even for China’s buoyant food market.

In June 2008, Little Sheep had a successful IPO in Hong Kong at a valuation of around US$400m.  The value placed on Nish’s contribution by his fellow directors was clearly demonstrated when they asked him to remain on the board post-flotation.