FEATURED PORTFOLIO COMPANY Roxbury Technology Corporation

Context

For its first 8 years, Roxbury Technology was a small, inner city business that distributed toner cartridges, with 3 employees and less than $2M in annual revenues. In 2002, the company’s founder died suddenly, and his daughter took the helm. Since then, RoxTech has been transformed into a remanufacturer of toner cartridges with 35 employees and $12M in annual revenues. In light of its rapid growth, RoxTech wanted a strategic plan to demonstrate to its major customer, a Fortune 100 retailer, how it planned to keep pace with its own success and fend off competitive pressures from OEM suppliers.

Advisory Need

RoxTech engaged Next Street to craft a practical, comprehensive growth strategy. Next Street also provided critical advisory services including analysis of profitability, expansion strategies, and organizational development that resulted in a major restructuring of the senior management team. In addition, Next Street supported RoxTech’s CEO in negotiations that led to a renewed strategic commitment from its major customer.

Financing Need

To prove its capacity and demonstrate its drive, RoxTech will need $1.1M to refinance debt, expand its facilities and make leasehold improvements.

Impact to Date

RoxTech’s major customer has committed to increase its business with the company. This influential retailer has also formed a steering committee of its senior managers who “touch” RoxTech to assist in the development of performance metrics, timelines, and reporting.

Looking Ahead

With Next Street as its trusted advisor, RoxTech is searching for longer-term financing to fund its growth strategy. Options under consideration include a build-out and implementation of a complementary business initiative and expansion of facilities. RoxTech’s profitability has increased 17% YTD and is on track for potential record profits of 200% over the previous year.