PERSPECTIVE: McIlhon: Metrics Led to IIP/Bossard Relationship

John Wolz

Ed McIlhon of Iowa Industrial Products Inc. first started doing business with Switzerland-based Bossard about 1980. To compete in the global market IIP customer John Deere decided to convert to metric.
�Metric fasteners were rare in the United States,� McIlhon recalled. �At that time if it were not for Bossard, I don�t think we could have got the job done.�
In addition to being a Bossard customer, McIlhon learned more about the company when his son, Casey McIlhon, went to work for Bossard before IIP was sold to Bossard in 1999.
Three weeks after selling to Bossard, patriarch Dan McIlhon died.
�Simply put, Henry Bossard is a great guy. When Dad died, I needed someone to mentor to, and Henry became that person.�
�I would say we have mutual respect for each other,� McIlhon described the relationship. �Make no mistake, he�s in charge, and I�m OK with that.�
Henry Bossard said he understands the relationship and that such entrepreneurs as McIlhon may have trouble joining another company.
�I would hate it if a Henry Bossard were telling me what to do,� Bossard said of himself. That�s why he wants individual companies to have as much independence as possible �to make mistakes and to do business.�
McIlhon, the 1994-95 president of the National Fastener Distributors Association, said the best thing about the IIP/Bossard merger is what they have brought to the table.
�Without going into detail, let me just say that I�m a better CEO because of them,� McIlhon explained. �I have a much better understanding of things like Net Working Capital, operating cost and world-class global sourcing.�
McIlhon said he loves doing business beyond his Iowa base. �I love the international marketplace. We are now in contact with 42 different John Deere units worldwide from Charlotte to China. I actually went to a Deere factory in India.�
�And Switzerland is not the worst place in the world to have board meetings,� McIlhon smiled.
�The most difficult thing is giving up control,� McIlhon reflected. �When Dad and I ran the company we had a philosophy: If we made money we would bonus it, and if we lost we borrowed it. The banks loved us. We really did have a great time. Of course if we would have kept doing business that way, we�d either be severely in debt or out of business today. While we really did have a lot of fun, we probably weren�t the most efficient company in the world. Board meetings pretty much consisted of a three-hour lunch.�
Though he has gained from Bossard, McIlhon has had to give too. Son Casey at one point returned to IIP, but another Bossard division later recruited him away. �I fully supported this. You have to go where you have the most to offer,� McIlhon acknowledged. But he added that �I may go back after him someday. After all, this is America.�
Is McIlhon happy with selling IIP to Bossard? �One need only look at some of the other mergers and acquisitions,� he said in obvious reference to recent bankruptcies of publicly held distributor roll-ups.
�Bossard is a fastener company, period. I like that.�\ �2002 FastenerNews.com