Initial investment in 2004; additional investments to increase ownership in 2005, 2008 and 2013
- Simonds International, founded in 1832, is a leader in the development and manufacture of industrial cutting tools for metal, wood and paper. It merged with International Knife and Saw ("IKS") in 2003. Many of IKS's stockholders had been bondholders prior to its reorganization. There was an opportunity to acquire stock from existing shareholders as it became clear that the merged entity had great long-term potential but needed a base of patient equity capital for that to occur. Simonds' capable, lean-experienced executive management consolidated the combined business, disposed of nonstrategic assets and product lines, and made selective acquisitions. The number of plants was reduced from 20 to 8. Today, Simonds' products are marketed and sold worldwide through facilities located in the United States, Canada, Germany and the United Kingdom.
Developments since Initial Investment
- The Company continues to focus on being a low cost producer of high value-added products within the cutting tool industry. The Company has reduced its manufacturing costs and improved its consistency of product quality as a result of the application of lean manufacturing techniques, capital investment and process control programs.
- Simonds is a leader in the development of innovative and technologically superior products. Recent innovations include new, higher quality metal cutting bandsaws, new file room equipment to sharpen, swage and shape wide bandsaws and new carbide bandsaw tooth geometry. In addition to building on its strong market position in North America and Europe, Simonds has also established a presence in higher growth emerging markets in Africa, South and Central America and the Middle East.
- Ironwood and management have both increased their equity position since 2004 and believe that Simonds still has prospects for exceptional long term growth.