Established in 1886, Berwind is a family-owned investment management company with a long history of financial stability and consistent growth in revenue and profitability. Representing several billion dollars in enterprise value, Berwind's six operating companies serve a number of industries including pharmaceutical, specialty chemical, medical packaging, automotive, life sciences, energy, general industrial, and natural resources. A significant portion of Berwind's revenue is derived internationally and Berwind has an aggressive acquisition program to reinvest its strong annual operating cash flows in future growth opportunities. Berwind also manages a portfolio of venture capital and private equity investments with the goal of generating attractive returns on investment while also broadening its exposure to different end markets (e.g. technology).
Berwind has a buy-and-hold investment approach which favors value-added industries and sustainable long-term growth and cash generation. They maintain 100% ownership in all of their operating companies and function under a highly decentralized business model, offering operating management significant earned autonomy while providing financial, business and operational advice and assistance from a small, energized corporate team headquartered in Philadelphia ("Berwind Corp").
The Berwind family is deeply committed to social justice and has a strong track record of driving positive social change. The Berwind companies are active in promoting diversity, equity and inclusion, and Spring Point Partners is a social impact venture founded by Berwind family members.
INVESTMENT PHILOSOPHY
We are long-term investors committed to private ownership. We intentionally maintain a diversified portfolio, both in industry type and in geography.
Berwind is committed to reinvesting in the growth and development of existing platforms and in acquiring new platforms for future growth.
Our buy-and-hold investment approach favors value-added industries with sustainable long-term growth and cash generation.
Our culture of generating significantly above-average returns focuses on building shareholder value. We track and benchmark returns using a scorecard methodology, which is heavily weighted toward profit growth, while recognizing the importance of cash generation.
We actively manage our portfolio to achieve an optimal mix of growth and cash. Divestitures may be triggered by changes in industry fundamentals or by shifts in investment objectives, but never by short-term profit outlooks.
Berwind maintains a conservative leverage profile and follows conservative accounting practices.
ACQUISITION CRITERIA
Market position
Acquisition targets should be leaders within their niche market.
Profitability
We measure value at the gross margin level. Berwind only considers companies that consistently deliver high gross margins.
Ownership
We insist on 100% ownership. We are a cash buyer.
Growth potential
We look for industries that will support sustainable organic growth, where future growth is driven by steady demand that is not subject to the fluctuations of fads or trends.
We look for better than GDP growth markets.
We look for companies that have the potential to grow faster than the markets they serve.
We look for companies with an international focus.
Management
We look for strong, highly motivated entrepreneurial management teams.
Deal size
We will consider acquisitions of any size if assimilated into an existing Berwind company. New platform companies could range in size between $200 - $900 million, with our preferred size between $400 - $700 million.
OPERATING COMPANIES
Our diversified portfolio comprises highly successful manufacturing and service companies which are all leaders in their market niche.
Our companies serve a number of industries including pharmaceutical, specialty chemical, medical technology, automotive, consumer products, life sciences, energy, general industrial, and natural resources.
FACT SHEET
Established in 1886.
Fifth-generation, family-owned investment management company.
Dedicated to long-term capital appreciation.
Diversified portfolio comprising manufacturing and service companies employing approximately 6,000 individuals:
Caplugs
Colorcon
CRC Industries, Inc.
Maxcess
Oliver Products
TASI Group
Berwind Natural Resources Corporation
Our companies serve a number of industries including pharmaceutical, specialty chemical, medical technology, automotive, consumer products, life sciences, energy, general industrial, and natural resources.
Operating companies represent several billion dollars in enterprise value.
Over 120 years of successful business operations and acquisition activity.
Decentralized business model.
Diversified for stability.
Global operations.
HISTORY
The Berwind-White Coal Mining Company, forerunner of today’s Berwind, began operations in 1886 and soon established a proud tradition as one of the nation’s leading coal producers. By the late 1950’s, however, coal was being supplanted by oil and other energy sources, and it had become clear that the possibilities for meaningful growth were limited.
In 1962, a new generation of family management assumed leadership roles and developed plans to diversify. The first step was to redirect utilization of the company’s considerable coal reserves from actually operating the capital-intensive, cash-demanding mines to leasing those mines and reserves to others.
This redeployment of coal assets produced considerable cash flow which was then used to establish a significant presence in other industries.
Growth Through Decentralization
The resultant diversification led to a redefinition of the company, so that today Berwind is characterized by creative growth in a number of different industries. Such growth is encouraged and enhanced by an atmosphere of open-minded, non-doctrinaire managerial interaction in which complete responsibility is placed at the operating level.
In recent years, Berwind has grown significantly as new companies have joined the group. Despite marked differences in areas of operation, these new companies have shared at least two crucial characteristics: one, significant market share, often in a niche market; and two, management with a strong entrepreneurial focus. The result is Berwind’s diverse enterprises, delivering quality products and services while maintaining consistent growth.
