Factsheet
case-study-2

Goodridge
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Goodridge

goodridge

Established in 1969, Goodridge is a leading automotive global fluid transfer system manufacturer supplying niche OEM, Racing, and Performance markets. It is the pre-eminent brand within the performance fluid transfer industry and is highly regarded by OEMs, racing teams and car enthusiasts around the world.

Goodridge had over 400 FTEs across 10 facilities in nine countries, on three continents.

Entry Date

December 2013

Deal Status

  • Realised
  • October 2021

Sector

Advanced Engineered Fluid Transfer Systems

Geography

  • UK Headquartered
  • International Business

complexities

  • Owner/Management Transition
  • Fixable Underperformance

rubicon origination

Rubicon was introduced to the family of the Founder three years after his passing through the advisors to his widow, who were running a sale process. Through our extensive experience in successfully navigating Owner/Management transitions in private Companies, together with our industrial experience in niche Automotive, we were able to build the trust required for her to feel comfortable that we would protect and enhance the Founder’s legacy.

Rubicon angle

Helping a family-run business to sell and manage the Owner/Management transition.

    • Growth opportunity

    • Goodridge was managed as a lifestyle business without a coherent strategy in place, and given its geographic diversity, had a challenging span of control. Additionally, there were areas where there was significant underinvestment, such as the brand, people and equipment.

      • Owner/management transition

    • Management consisted of 18 individuals spread worldwide without a coherent organisational structure. Rubicon’s thorough due diligence identified that the business required a new, external CEO and a geographically-segmented organisation.

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Goodridge

VALUE CREATION STRATEGy

The business had an exceptional brand which was under-invested and an anchor to value creation.

In addition, there was evidence of insufficient OEM customer focus and service and the historically strong Performance segment had been ignored and had lost significant market share.

    • Cash Flow Monitoring: Goodridge did not track financial performance effectively and there was no monitoring of cash. Rubicon implemented their 12 week cash flow monitor process pre acquisition, and within 3 months, Goodridge were reporting their monthly results by day 6 of the following month.

    • Growth Strategy: The focus was changed from volume OEM customers to niche customers, aligning the customers’ needs to the Goodridge capabilities and margin expectations. In addition, the performance segment was rejuvenated by new recruitment and increased investment in the brand. Geographic expansion was achieved both organically (Japan) and by acquisition (Italy).

    • Management Team Restructuring: The Management Team was restructured including the appointment of a new CEO and regional Managing Directors in the USA and Europe.

    • Product Development & Innovation: Significant additional resources were added in this critical area, enabling new applications such as EV battery cooling and hydraulic suspension systems to be penetrated.

“A massive thank you to Rubicon for taking such good care of the business that we began over fifty years ago and taking it from strength to strength ”

Trudi Goodridge

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