Strategic transformation

The knowledge and the nerve to change

We live in a fast-paced society with ever-changing markets and competitive arenas. For instance driven by globalization or new technologies. Therefore companies need to be able to adapt to an increasingly dynamic environment. Even if it means changing their existing business model altogether.

However, transforming a company is not for the fainthearted. For it often involves major adjustments to a wide range of operational and financial aspects. As a result, it can be challenging to find an investment company with the knowledge and the nerve to support your plans for change.

Sharing the risk, before sharing the benefits

The Torqx team has supported many business transformations. Due to our extensive experience, we are well-equipped to understand and assess the most important implications of the changes involved.

From arranging the required funds to managing the project, we can help you meet all the requirements for a successful execution. Sharing the effort and the risk, before sharing the benefits.

“The investment team took the risk to support the conversion of our second paper machine. As a result we can now cater to the growing demand in shipping boxes used by e-commerce businesses.”
Geert Wassens, former Managing Director Parenco

Case: Online news gave us trouble. Online shopping gives us a future

The perspective of Geert Wassens, Raymond Jolink and Hans van Dam, former Managing Director, Director Supply Chain and Finance & IT Director at Parenco.

Our previous owners were determined to become the leading producers of newsprint in Europe. But when they reached their goal, the market for this type of paper was already dwindling. The growing importance of online news led to a decline in newspaper sales. Resulting in cut-throat competition among producers.

At Parenco we had anticipated this development and countered it by offering other varieties of publishing paper. However, if Parenco was to have a promising future we had to do more than just increase the volume of these products. So we started to work on plans to convert our second paper machine into a Testliner machine. This type of paper has the thickness and the quality needed for the production of corrugated boxes and packages. A rapidly growing market, due to the rise of e-commerce. Thankfully, the investment team saw the potential of the conversion and took the risk to support us. Arranging the 100 million euros required to complete the job and negotiating a lump-sum turn-key solution with our supplier.

Continue to Turnaround

Turnaround

Heading for problems?
Let’s turn them around

A lack of performance, disappointing figures and (potential) financing issues are hardly the stuff that investors’ dreams are made of. But when the right actions are taken, such setbacks can turn for the better.

Although companies often have the solution in mind, their cash and equity position may no longer accommodate any restructuring investments. Meaning that they need an investment partner who can fund and support them promptly, to help turn their problems around.

Changes that work

The Torqx team has first-hand experience in restructuring companies. Helping to break the downward spiral and return them back to health. We do so, by stabilizing its finances and helping to achieve positive cash flows. Allowing for the improvement of the core business, once the dust has settled. As our aim of restructuring is always to realize a sustainable solution, we provide the funds, people and tools to refocus on growth and build companies that are ready for what lies ahead.

"Torqx has helped Fabory to completely turn-around its performance by refocusing the company back on its core as a true ‘Master in Fasteners’. Together we redefined its strategy and the required organization to execute on this, quickly driving performance back and even beyond historic- and industry benchmark profitability."
Yves Derycke, CEO at Fabory

Case: Back to the Master in Fasteners

The perspective of Yves Derycke, CEO at Fabory.

Fabory, initially established under the name Borstlap in 1947, has historically been a strong brand name with healthy industry leading profit margins in the distribution of fasteners. In 2011 Fabory was acquired by US conglomerate W.W. Grainger, with the goal to expand in Europe. Grainger broadened Fabory’s focus to a wider set of MRO products, with increased focus on trade customers and a cost-plus pricing model. As a result, Fabory’s performance deteriorated significantly.

Torqx understood the business well and believed they could return the business to its historical strong performance and leading market position and acquired Fabory in 2020. Torqx worked together with the Fabory leadership team to redefine the strategy and brought back the fastener expertise and distinct Fabory brand recognition.

Together we redefined the organization, refocused the business on OEM and MRO clients, and implemented a value-based pricing model to capture the value from its (long-tail) inventory. As a result, Fabory is now recognized again as the Master in Fasteners with healthy profit margins and a strong motivated and engaged team.