Graham’s Strata-g Pays Off

Graham Partners, a private investment firm focused on investing in businesses with advanced manufacturing technologies, innovative product development capabilities, and strong growth potential, is pleased to announce it has successfully completed the combined sale of portfolio companies Strata Products Worldwide (“Strata”) and Strata Proximity Systems (“SPS”) in under four years of ownership. Strata is a leading global provider of innovative safety products and services to market leading customers in the mining industry. SPS, a manufacturer of proximity detection and collision avoidance systems for mining applications, was a strategic investment made in 2011 to further bolster Strata’s advanced electronic safety product platform.

During Graham’s ownership, Strata’s EBITDA tripled, as a result of its proven ability to commercialize proprietary new products, product advancements and international expansion initiatives, such as:

• Delivering innovative products to meet evolving regulatory environments – The company delivers innovative products to better meet customer needs of improving production efficiency while also improving safety. Strata works closely with regulatory bodies to enhance both infrastructure and miner safety throughout the world.
• Proprietary product advancements – Under Graham’s ownership, Strata developed a comprehensive suite of advanced electronic safety products providing a robust growth engine for continued expansion. Graham’s strategic addition of SPS enabled Strata to utilize SPS’s technologies to further develop its electronic safety platform, gaining additional market share.
• International expansion opportunities – Graham identified an opportunity for Strata to expand its services and increase its product sales overseas, penetrating new markets. Strata’s global footprint enables sales in key mining regions in the United States, Australia, South Africa, United Kingdom, Poland, the Czech Republic, Norway, Mexico and 10 other countries.

Rory Paton-Ash, retiring CEO of Strata, states, “Our partnership with Graham has been very rewarding, both professionally and personally. As a significant equity stakeholder in Strata and SPS alongside of Graham, I am pleased to share in this successful investment outcome. I have enjoyed overseeing Strata become the leading global company delivering technology-enabled safety products to the underground mining industry. The company is uniquely positioned for strong long-term growth and continued market leadership.”

Graham Partners facilitated the transformation of Strata into a global leader of advanced mining safety products and services during its holding period. Chris Lawler, Managing Principal at Graham Partners, adds, “Our investment thesis focused on the growth opportunities that were available for Strata to expand its product offerings and subsequently penetrate new global markets. We worked closely with Strata and SPS to successfully develop their market capabilities. Many of the achievements during this partnership can be attributed to Strata’s strong management team, and we wish them continued success under new ownership.”

FOR FURTHER INFORMATION CONTACT:

Chris Lawler (clawler@grahampartners.net)
Christina Morin (cmorin@grahampartners.net)
Tel: (610) 408-0500 / Fax: (610) 408-0600
www.grahampartners.net
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