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Stürtz – a Success Story

By Dr. Rolf Lanz, Managing Partner

CGS added sustainable value to Stürtz. The machine manufacturing company specializing in the production of machines for PVC window construction posted striking growth from its acquisition in 2017 until it was sold in 2021. The figures emphatically show that: turnover up 50%, EBITDA doubled, EBITDA margin improved by 50%, 90 new jobs created.

CGS acquired Stürtz in 2017 for a number of reasons: the unique position in automation, the positive prospects in the construction and window market as well as the operational excellence potential, i.e. process and system optimization opportunities over the entire value chain.

New strategy

The first thing CGS and the Stürtz management did was to define a new strategy together. They formulated a roadmap outlining the necessary measures and different strategic thrusts for operational excellence and implemented them consistently. The reorganization of sales plus the creation and expansion of proprietary sales organizations in the main markets of Germany, Benelux, Poland, Romania, the US and China led to strong sales growth and gains in market share.

Strengthened management team

Organizational measures included the strengthening of the management team with the recruitment of a head of sales, chief financial officer and head of production, and a comprehensive overhaul of the company processes. The resources required for growth were accessed through increased efficiency – introduction of lean management – and consistent outsourcing, especially including eastern European countries.

Focus on engineering

CGS and Stürtz focused in particular on engineering throughout the entire process. The «ContourLine» product line already in use to weld PVC windows seamlessly when CGS entered the market failed to live up to its promise, leading to the withdrawal of the product and high costs. CGS proceeded with a thorough reworking of the technique. The resulting successor product launched two years later was a complete success and contributed to growth. Stürtz also developed the first production line for aluminum windows and brought it to market.
Another focus area was software solutions for Industry 4.0, which was very well received by customers and made a material improvement to controlling customer production facilities.

Positive outcome

Under CGS ownership, Stürtz developed into a leading machine manufacturer for PVC window production with great further growth potential. The company’s annual turnover was about EUR 33 million when it was acquired in autumn 2017. Four years later, turnover had risen by over 50% to over EUR 50 million. EBITDA was doubled and the EBITDA margin increased by about half to approximately 20%. During the same period, Stürtz increased the order volume from EUR 32 million to over EUR 70 million and created over 90 specialized positions. In a nutshell: a success story.

Further information at: www.stuertz.com

 

Stürtz covers all the steps involved in window production with standalone machines and production lines.

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