HATRIA

January 2014 – Teramo, Italy

Hatria is a design sanitary ware 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”.