Acoustical Material Services ("AMS") is a leading distributor of building products in the western United States with a 40/60 sales mix between residential and commercial construction customers. Quad-C was able to acquire the Company in partnership with management led by Ruben Mendoza, the son-in-law of founder/owner of the Company. Ruben, along with other key members of management, invested a significant amount of equity when we acquired the Company in August 2003. Quad-C was attracted to AMS' ability to consistently grow its revenue through product line extensions, acquisitions and geographic expansion, all of which had contributed to AMS' track record of uninterrupted sales growth since the Company was founded in 1969. AMS' balanced approach to growth allowed the Company to exceed the market growth on a consistent basis.
Management continued to drive growth with both residential and commercial customers over the years following the transaction, with an emphasis on Greenfield expansion and margin improvement. Quad-C was able to assist the Company in completing an acquisition that brought AMS an additional "core" product that not only further diversified the business but also enhanced AMS' value to its contractor customers. Within three years of our acquisition, AMS had increased its EBITDA by approximately 200%.
Identifying a Strategic Partner
After a recapitalization in April 2005 which provided liquidity to the shareholders, AMS was sold in November 2007 to a strategic buyer that valued the Company's market position, vendor relationships and management team. The investors, including management, realized a significant return.