In the past few years, Standex has acquired several businesses that resulted in larger, more profitable operating groups. In 2005, Standex completed the acquisitions of Kool Star, a manufacturer of walk-in refrigeration units located in California, and Innovent Specialty Products, a manufacturer of processing tooling. In 2007, the Company acquired American Foodservice and APW Wyott, market leaders in the Food Service Equipment Group market. In line with the Company’s strategy, these acquisitions strengthened Standex’s market leadership, enabled the Company to pursue new growth opportunities, and provided significant operational synergies. In the face of the 2008 recession, Standex embarked on a two-year overhaul of its cost structure by reducing its geographic footprint and trimming our indirect labor and administrative headcount by nearly 25%. These actions permanently shed approximately $40 million from our cost structure. Since then, Standex once again returned to seeking growth opportunities with acquisitions in our strategic business segments of Electronics, Food Service Equipment, Engraving, and Engineering Technologies.
Standex plans to leverage the combined strengths of these businesses to further penetrate current markets and to enter new geographic and vertical markets. Standex will continue to make acquisitions that are synergistic with its current operating groups, and that can quickly contribute to profitability.