Olex is the leading electrical cable manufacturer in Australia, employing over 900 people. With three manufacturing sites (two in Victoria and one in New Zealand), Olex manufactures construction cables and power & industrial cables used in residential, industrial and commercial building applications.
After a period of underperformance, Catalyst worked with management to restructure the business with a focus on:
- Raising Olex’s brand profile and achieving closer alignment with key customer needs through the development of new products and services; and
- Significantly reducing manufacturing, distribution and overhead costs
(including the closure of the Sydney plant).
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- Olex underperformed original expectations with EBITDA falling following acquisition.
- Re-engineering of the cost base resulted in a material improvement in operating margins.
- Subsequently, the business experienced a strong upturn in demand for its products from the industrial market and the electricity supply industry.
- This, combined with the benefits of the restructuring undertaken, led to strong growth in earnings by 2006.
- The company was sold in November 2006 to Nexans, a global leader in cables and cabling systems realising a strong return for investors.
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