Magnum’s Chief Financial Officer, Bill Mead, and Technical Sales Manager, Mike Abare, delve into our company’s vision – past, present and future.
Bill shares his perspective on the challenges, milestones and transformative moments that have shaped Magnum Systems’ trajectory. Discover the strategic decisions and financial strategies that have driven our success thus far. Plus, catch a glimpse into the future as Bill unveils the company’s vision moving forward.
Whether you’re a stakeholder, employee or simply curious about the inner workings of a successful systems integration company, this episode offers a unique opportunity to gain firsthand knowledge from our CFO.
Transcript
Mike Abare:
Welcome to Magnum Systems Podcast, where we'll aim to dive deep into the world of A for automate, I for integrate, M for manufacture. I'm your host, Mike Abare, and I'll be bringing you expert interviews, thought-provoking discussions, and real-world case studies that shed light on the latest trends and developments of systems integration. Whether you're a seasoned professional who's seen it all, or just curious about manufacturers who are revolutionizing their operations, this podcast is your one source resource. So sit back, relax as we aim to cover all the challenges, automation and integration is solving today. Let's do this.
Mike Abare:
Hello everyone. Welcome to the show today. I have the distinct pleasure of introducing Bill Mead, CFO for Magnum Systems. Bill, thank you for joining us today.
Bill Mead:
Thank you, Mike. I'm glad to be here.
Mike Abare:
Glad you're here. Hey, today we want to talk a little bit about Magnum story, our history, where Magnum's today, and what the vision is for the future. Before we get into that, will you share a little bit about your background?
Bill Mead:
Sure, I'd be happy to. So, I've spent the last 30 years or so working inside private companies that make stuff. Anywhere from high volume, low value, repetitive manufacturing operations, all the way to low volume, high value, custom engineered type of environments and everywhere in between. Most recently, for the last 18 years or so, I've been in the material handling/material moving business anywhere from container handling equipment to bulk material storage equipment, and most recently at Magnum in the bulk material movement business. I followed kind of a traditional career path for people to do what I do. Starting out in more of a financial reporting role, moving up through financial analysis, then to controlling, and then finally in the financial executive position that I enjoy here at Magnum.
Mike Abare:
Thank you for sharing that that history Bill. And that certainly leads you to be the perfect expert today to talk about the Magnum story. So, with that, would you lead us through the story where we're at today, where we were, where we're at today, and what do you see as the vision or the future for Magnum systems?
Bill Mead:
Certainly. So Magnum Systems as it exists today is the combination of two companies. One is Taylor Products who started out as a packaging machine manufacturer, primarily servicing the agricultural industry. And Smoot company, who is a pneumatic components manufacturer serving the bulk material moving industry. Those two companies are both about 60 years old and have a legacy of industry leading products. Those two companies got together in the early two thousands and spent most of the next 15 to 20 years as a very stable combined company, continuing to provide industry leading products. The company participates in most industries, we like to say anything that needs a pellet, powder, flake or seed moved, we can do. So, we are becoming a systems integrator that happens to manufacture two best in class products and we like to say that we want to bring the wow to our customer. So we start out on the front end of the business where we bring bulk materials into a facility, and then typically we exit the back end of the business where we're mostly packaging things using automation.
In the mid two thousands, Magnum Systems was purchased by the first of many private equity sponsors with the goal of adding one plus one to be more than two. Again, we spent the next several years moving forward as a stable company, continuing to provide industry leading products, but not really growing to enjoy the size and the scale that we had hoped. With the most recent acquisition of our private equity sponsor, 3 Rivers Capital, out of Pittsburgh, Pennsylvania. We are hoping that this is the beginning of a rapid growth and capability and size and scale. Since the acquisition, we have added approximately 50% more footprint to allow us to continue to produce world-class products. We are looking to add to our product portfolio through acquisition. Our intent is to add capabilities that we currently don't have to make us more of a complete material handling provider.
Over the last few years since coming out of COVID, Magnum has restructured our operations to beef up our engineering project management and value-added selling organizations. 3 Rivers Capital who acquired Magnum in January of 2023, is bringing an investment mindset to the organization as evidenced by the addition of a new facility within 30 days of the acquisition, investing heavily in internal systems and investing in people both by adding human capital as well as developing the current workforce through training. 3 Rivers is also bringing an investment mentality to the table through acquisition while Magnum's competitors are being acquired, we are looking for acquisitions to build out size, scale, and add new product capability to become more of a full-service supplier to our customers.
Mike Abare:
So Bill, thanks for coming and sharing today. One of the words I pulled out of your monologue was the wow. The wow factor. And, and so from our working with the president and CEO of the company he's always described the wow factor as having that total experience from that first phone call, that first contact, that first email throughout that process, whether it's engineering design and you say, wow, I've never seen something designed that way to concept of scope to execution of the project, to the project timelines all the way down to the manufacturing of the equipment, to the quality the detail that's put into manufacturing. Even to how we put it on a crate and send it out the door, that it's not packaged in a paper bag after all the customer's paying millions of dollars at times for this equipment and that wow factor goes all the way out to installation and start and commissioning. At end of the day, what we're looking for is a customer to say, wow, I've never had an experience like that. I want to do business with Magnum Systems again.
Bill Mead:
That’s exactly right, Mike. That's a great way to describe the wow factor.
Mike Abare:
Awesome. So again, Bill, I just thank you for coming today. Really appreciate your insights and sharing the Magnum story. Looking forward to the next five years and what an exciting time it is to be at Magnum Systems and certainly what an exciting opportunity for our customers to be engaged and work with Magnum Systems. Thanks again.
Bill Mead:
Thank you, Mike.
Mike Abare Show Close:
And that's a wrap for this episode of AIM. Thanks for listening and thanks for joining us today. If you have any questions or would like to learn more about the topic we discussed today, feel free to reach out to us on our website or social media channels so you never miss an episode packed with valuable insights. Please join us next time as we continue to explore the ever-evolving landscape of system integration. Until then, keep aiming for success. This is Mike signing off. Good day.
