How Key Investments in Capacity Can Accelerate Growth

Twitchell Technical Products is a vertically integrated producer of engineered technical fabrics and coated materials.  The company’s products are used in a variety of applications, including interior and exterior roller shades, floor coverings, and outdoor furniture. The company’s products combine design flexibility with critical physical characteristics such as moisture and UV resistance.

Prior to working with Heartwood Partners, Twitchell had operated for many years with a highly indebted balance sheet that constricted investment in equipment and personnel, which in turn led to management instability and limited growth.  The Twitchell management team was attracted to Heartwood Partners’ lower- debt approach, willingness to invest in capital equipment to expand capacity and address operating inefficiencies, and desire to create an attractive incentive plan for management.

Heartwood Partners worked with and supported the management team to develop a strategic plan that involved (i) investing in new equipment to expand capacity and improve production efficiency and quality, (ii) implementing lean manufacturing to reduce lead times, and (iii) continuing to expand into new end markets. Heartwood Partners also created an equity incentive plan for management to align their interests with its own to meaningfully grow the business. To further support the team, Heartwood Partners added a textile industry veteran to the Board with deep ties to lean manufacturing programs based in Alabama and knowledge of equipment needed to enhance production capabilities. Within the context of a low-debt balance sheet, management had the freedom to operate the business in the most optimal manner and made the investments needed to drive growth.  Based on their strong efforts, management was able to exceed their growth objectives purely through organic growth initiatives during Heartwood Partners’ ownership.