January 2014 – Teramo, Italy
Hatria is a design sanyware manufacturer with sales of €15m of which 50% outside of Italy. The parent company, Mohawk, had invested €40m in a brand new high tech plant but failed to making it run (35% scrap vs. 10% for best practice plants) and got caught in the downturn due to competitive pressures from lower costs alternative.
Following its acquisition in January 2014, Hatria was turned around through a 3-lever strategy:
- Reduction of scrap from 35% down to 15% in 6 months
- Re-internalization of the R&D process and ambitious product launch program
- Positioning the company for third party high-quality production through best practice manufacturing
Since its turnaround, Hatria has been generating c. 13% of EBITDA for €20m+ of Sales. Keravalon was forced to divest its minority stake in Hatria in March 2015.
Hatria is evidence that Keravalon can fix complex industrial processes quickly and manage a successful turnaround in a so-called “foreign culture”.