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Industrial Parts Specialties, LLC



History

Early Years

In 1978, Chuck Arnold and Wayne Rizzutto founded Industrial Parts and Baton Rouge Grinding Company. The business was primarily a supplier of alternate source machined parts for the petrochemical and refining industries.
 
Jaw InspectionHard coatings were added to the capabilities and helped increase volume as the company grew. In 1980, the company dropped the Baton Rouge Grinding part of the name, but still did considerable grinding work. The company moved forward at this time as primarily a parts business.

Through the 1980s, the company grew significantly with sales volume consisting of about 95% manual manufacturing of parts and 5% repairs. In 1991, IPS invested in CNC machining capability in an effort to grow the business. Two CNC turning centers and a CNC milling center were acquired that year.

In 1992 Wayne Rizzutto recognized the need to develop the repair capabilities of IPS. Chuck Arnold did not believe that this was a viable path for IPS and in 1993 Wayne Rizzutto bought out Chuck's interest in the company to become the sole owner of IPS.

Turbulent Years

Wayne Rizzutto sold the assets of Industrial Parts Specialties to Citation Pump Company. Citation was a structured vehicle owned by the Hackney Group to facilitate the deal. Dan Ripp, part-owner of the company, functioned as the general manager. Late in 1995, John Adams was brought in as the new general manager. Dan Ripp sold his share of the company back to Citation Pump Company and the name of the company was changed back to Industrial Parts Specialties. Investment in another CNC turning center was made during this year.

By early 1997, the Hackney Group recognized that sales were falling and something needed to be done. They brought back Wayne Rizzutto as the general manager feeling that the company's founder could shore the company back up. In 1998 due to new business generated in manufacturing for the oil industry, two new CNC machining centers were purchased, one large turning center and one large milling center. The repair segment of the business was now growing at a greater rate than the parts side of the business.

In early 2001, IPS built and relocated to a new 58,000 square foot shop in Port Allen, LA. Later in 2001, Wayne Rizzutto replaced Bill Pafford as the general manager.
 
A slump in business after the 9/11 attack in New York and a resulting slowdown in business, caused sales slump. The reaction of the management team at the time was to reduce costs in an effort to improve profits. The end result of this action was to put the company in a position of not being able to meet customers' needs. The sales of the company were spiraling down.

The Turnaround

In April 2003, John Ganley replaced Bill Pafford as general manager of IPS with an option to purchase  20% of the company. At this time the ability of the company to function was so poor, sales had dropped to 1980s levels, and an unfriendly banking relationship had the company scrambling to refinance the business. Trouble in other Hackney Group companies made them unable to help the financial condition of the company. IPS was close to a refinancing package in August of 2004 when Morris Hackney filed for personal bankruptcy protection. As a result, the IPS refinancing package was put on hold. To avoid default and to prevent the bank from shutting IPS down, IPS sought protection under Chapter 11 of the bankruptcy code on 9/30/2004. The sales of the company were improving, but still below the level needed to be profitable.

In August of 2005, IPS put a Plan of Reorganization before the court. The plan was accepted by all parties and approved by the court. As IPS emerged from Chapter 11, John Ganley, due to significant equity investment and being sole guarantor of the company's line of credit, became the 65% majority owner of the company. TMH Holdings (what was left of the Hackney Group) was the 35% minority partner. The final decree of the court was issued to IPS on December 5, 2005. Sales of the company were still below profitable levels, but the turnaround implemented by John Ganley was working and cash flows were increasing. The company was still operating under the financing agreement entered into during the Chapter 11 filing, and the primary objective was to return to profitability and to seek a better financing arrangement.

By 2007, the turnaround was complete and the company was beginning to achieve profitability. Refinancing efforts were underway and a new financing arrangement was finalized in April of 2008. Two new milling centers were purchased in June of 2008 to handle an upturn of work in the oil industry and to replace the original milling center that was completely worn out. Volume and profits of the company were steadily increasing at this time.

On 9/11/2008, John Ganley passed away as the result of a sudden heart attack. Will Ganley, John's son took over as president of the company and continued what his father started. Sales and profitability continued to improve. In February 2009, Trudy and Will Ganley bought out the minority partner to own 100% of Industrial Parts Specialties..

In September of 2010, IPS started a field services division when presented with an opportunity to hire several key personnel from a business that was engaged in that field. This new venture did well and it generated additional manufacturing and repair business for the IPS shop. The company was in a strong financial position and generating consistent profits.
 
Due to another boom in the oil industry in late 2010, IPS purchased two additional turning centers. One to replace two older machines and one much larger that enabled more efficient machining of some larger parts we had been making on manual equipment.

The Future

The management team of Industrial Parts Specialties led by Will Ganley is continuing to carry out the vision that John Ganley had for the company with plans to grow the company through expansion and acquisitions over the next several years. The workforce, many of whom have been with the company more than 15 years are proud of their company and what we have accomplished.
 
Being a part of such a dramatic turnaround has taught those of us that experienced it how precious it is to work for a company with a management that has vision and the knowledge to achieve its goals. The principle that the customer always comes first has been the guiding force that has brought us through the tough times and enabled us to become such a successful force in the local and regional machinery service industry.