Business Description

Fabrene was a North American manufacturer and marketer of woven polyethylene fabric. In 1994 Harrowston purchased 45.45% of Fabrene for $7 million, arranging the balance of the purchase price and debt for this acquisition.

Investment Thesis

There was an opportunity to capitalize and expand on Fabrene's strong customer base, product development opportunities and low-cost production. An original investment partner, The InterTech Group, Inc., offered excellent industry, technological and operating experience.

Strategic Initiatives

A skilled senior management team was recruited and a capital expenditure program created to achieve improvements in capacity, quality and costs. Government financing programs were utilized and a vendor take-back note was re-financed. Fabrene's marketing strategy was focused and new end use applications for its products were developed.

Investment Results

In the same year, 1994, Harrowston accepted a $17 million cash offer from a strategic buyer for its share, producing

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