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FLOW, a 61% gross margin branded OEM fluid control products company, serves a national and international customer base of end users, distributors and integrators who provide fluid solutions in pharmaceutical, biotech, food & beverage, water/wastewater, mining, electronics, data center, HVAC and other end markets.

FLOW has two distinct operations: A lite manufacturing division which cuts, welds and fabricates thermoplastic, corrosion-resistant pipes and fittings for environmentally safe installations by others. It also supports a large network of fluid product distributors who sell their private-labelled thermoplastic pipe & fittings, valves, actuation, and controls’ products to flow control product and chemical feed integrators or end users.

The Company brings deep experience and expertise to fluid engineers and end-users seeking to find quality fluid product solutions to their complex fluid processing applications that typically carry caustic fluids.

The mid-60’s majority owner expects to support the transition for 1-2 years. Two younger owners with minority stakes expect to stay and support future growth.

All three owners bring strong sales, relationship management and technical know how to the business.

The ideal buyer brings diverse experience in fluid control product sales, manufacturing, and engineering. A strategic buyer with a solid operations and admin organization will benefit from adding FLOW’s niche fluid control products portfolio and robust sales DNA to its portfolio. We believe you’ll find a great opportunity to grow with the existing customers.

The Company rents a 20,000 sq. ft. facility that includes offices, warehouse, and a fabrication shop.

The fluid control market remains strong, increasing every year as growth drives demand for more fluid processing in a variety of end markets. FLOW’s end market growth and demand for FLOW’s niche products combine to make this Company a strong player in the market.

FLOW’s management team also sees strong opportunity in expanding their presence to agriculture applications, especially where chemicals and fertilizers are carried. The US government’s initiative to grow microchip production domestically is also a strong tailwind for future growth and applications and the Company’s products are getting spec’d into such applications.

Castle represents an exciting ±$30M corporate divestiture opportunity (selling a division of ParentCo) as either a platform or add-on acquisition to financial and strategic buyers. Castle contract manufactures highly engineered products to OEMs spec for HVAC, electronics, pharma, automotive, military, powersports, EV, industrial products and other product manufacturers. The ParentCo manufactures branded products that are sold directly into another industry. Castle’s parent began construction of a new manufacturing plant and will relocate all their attention and branded products to that facility. The ±$30M contract manufacturing division will remain at the existing facilities.

The contract manufactured products are technical in nature and made from a wide variety of raw materials to achieve the specific technical attributes and outcomes spec’d by customers. With diverse end markets, it’s likely you own a product with Castle components. They can be found in thousands of technical applications. The Company enjoys a diverse customer base with the top five generating 12%, 9%, 8%, 7%, and 7% of revenue.

Castle is led by an experienced team of manufacturing, operations and sales professionals who will remain with the division. Opportunities to participate in ownership (with either a strategic or financial buyer) are welcomed. The industry is large but geographically fragmented. It’s possible to grow this business by acquiring other technical contract manufacturers in other geographies.

Castle’s Parent Company will retain senior finance, HR and IT staff so those G&A areas will need to be replaced. Management estimates $500k will cover the cost of replacing this staff and we have already adjusted EBITDA to reflect this ($4M EBITDA reduced by $500k for replacement of these G&A staff). ParentCo seeks some flexibility as they move their branded operations out of the Company’s current plant. They expect to move out in April or May of 2023. After the move, the contract manufacturing division will have ample room for growth and can support tripled revenue in current facilities. All key operations and sales leaders stay with this division. They currently run the division. The ParentCo CFO will support transitioning the finance function to a new CFO. The business is highly professionalized today and they don’t expect a heavy lift in supporting hiring new leaders for HR, IT and finance.

This is a very professionally operated company and the division benefits from being part of a well-run organization. The division hasn’t been the priority of the Company, rather, the companies own branded products have received most of ParentCo’s attention and resources. It will be great to align with a strong financial or strategic partner who wants to grow this operation.

The contract manufacturing operation in run from two manufacturing plants.

Castle has grown nicely with its customers over the years. When it wins business, it is typically for the life of the OEM product, i.e., for HVAC, Castle provides product for the life of the OEMs HVAC model, for automotive it’s the life of the auto model, for power sports equipment it’s for the life of that model, etc. This means the business is VERY STICKY and predictable. Castle’s product engineers work with their customers in designing products for the replacement models driving long-term customer relationships. The market served is highly fragmented geographically and an opportunity exists to acquire multiple “Castles” in other markets or to greenfield in other markets.

"SPIRIT" is an international logistics and transportation solutions provider serving the critical, complex, and fluid supply chain needs of its customers. The Company focuses on highly regulated commodities that require domain expertise to ensure clients get their products to customers in a timely and efficient manner while maintaining compliance with FDA, USDA, TTB and related government entities. In this sense, SPIRIT is a true partner to their client’s supply chain which is evident given strong customer retention and the highly recurring nature of services rendered.

Over decades, SPIRIT evolved into a turnkey solutions provider offering clients an a la cart menu of import/export logistics services including supply chain consulting, transportation services, customs services, special transportation brokerage, inventory management, etc. This asset-light, multi-pronged business model allows SPIRIT to capture more of its clients’ logistics-spend resulting in an attractive margin profile and top-line growth trends. Top-notch quality, coupled with modernized systems and data management, give SPIRIT an edge against its competition – the platform is in place to scale organically and through acquisition.

The Company is led by an exceptional management team with subject matter experts in food, beverage, spirits, lumber, steel, chemicals, and other markets that historically require more compliance given the unique regulations governing each commodity. The majority of clients utilize SPIRIT’s import and/or export services, however, the Company is well-versed in managing goods and services across a global supply chain. There are approximately 2,000+ active accounts with no customer concentration. The largest customer is less than 5% of revenue. SPIRIT enjoys consistent, YoY growth with revenue trending slightly above $21M in 2022 and EBITDA margins north of 25% (potentially more as “normalized” adjustments are fleshed out). Its customers transfer more than $1B of their products through SPIRIT.

SPIRIT seeks to recapitalize with an experienced equity partner that is well-versed in both global T&L services, global supply chain services, and buy & build strategies as the fragmented market is well-suited for future growth via M&A. The existing shareholder desires to retain a meaningful amount of equity along with including a few key company leaders. Please note this will be a competitive process whereby valuation, tangible operating experience, and cultural alignment are all considered in the selection process.

The Company leases its East Coast offices from a related entity. Branch locations are all leased from third-parties. Leases will transfer/convey with the sale of the operating business.

According to Research & Markets, the global logistics market is $4.9 trillion and expected to grow to $6.5 trillion over the next five years. Growth is driven by increased demand, a growing global supply chain, and a boost in eCommerce. The third party T&L market is highly fragmented with thousands of licensed providers serving the marketplace in the US alone. Management believes there is an opportunity to consolidate similar high value, niche service providers that complement SPIRIT’s core offering. The Company’s first acquisition was completed in 2021 and has proven to be very successful.

Over the course of decades, SPIRIT has developed a nationally recognized brand – one that customers identify with superior quality. Because of this, the Company does not face much competition from other vendors. On occasion, SPIRIT will bump into a large global logistics provider that is bidding downstream. At the appropriate time, Spirit will be an excellent acquisition target to large multi-national logistics companies and they get courted regularly by large suitors.

PEARL sells and services the industrial hydraulic hose, cylinder and connector market for OEM and replacement components. End markets are primarily industrial equipment hose and cylinder repair, but other facets of the business include OEM components for niche OEMs, as well as niche hose repair for heavy hydraulic equipment in large machines, ships and other applications like steel, paper and aluminum manufacturing.

The Company is based in the Southeast and is a full-line distributor of most major motion and control technologies manufacturers, supplying hydraulic and pneumatic cylinders, industrial hoses, automation components and systems, engineered products, and instrumentation products.

The Company has a team of technicians providing on-site and off-site services for large corporations and local businesses.

At the center of the business’ DNA is a commitment to delivering excellent customer service. The Company enjoys a long-standing reputation for quality products and superior customer support.

The CEO, in his 80s, is ready for retirement. The current team, including the Company’s day-to-day President, have the capabilities to run the business consistent with current operations.

PEARL seeks a passionate partner with experience in the industrial distribution market; hydraulic repair and distribution is a real plus. There is significant room for growth in this market.

The Company rents a 20,000 sq. ft. facility that includes offices, warehouse and a machine shop from an entity owned by the majority shareholder of the company.

You’ll find PEARL located in an excellent, growing market extremely appealing for hydraulic repair and distribution businesses given its strong industrial manufacturing base. However, the Company’s ability to provide on-time, high-quality solutions and the long history they have in the area have made PEARL the “most trusted partner” and a well-known player.

The industrial manufacturing market is driven by growing technological advancements in the hydraulic industry. Combining hydraulic cylinders with electronics for enhanced functionality, increased accuracy, and improved and controlled performance in various applications is expected to be a key factor for the market growth.

ROOSTER, a commercial landscaping company based in the Southeast US, provides maintenance (60%-70%) and enhancement services (25%-35%) with nominal new installation projects (5%-10%). Their client base consists of HOAs/apartment complexes, institutional facilities, businesses and healthcare facilities. With locations in 3 key markets, ROOSTER enjoys a diverse customer base and wide service area. ROOSTER generates exceptional margins compared to industry standards with 30%+ Gross margins and ±22% EBITDA margins.

The Company typically has ±90 employees but varies depending on the season. ROOSTER built an exceptional culture over the years and enjoys high employee retention with many long-tenured employees. Three shareholders seek retirement. Of the three, two are involved in operations, one is inactive from operations and all locations have other general management in place. The active owners expect to provide a 3-6 month transition commitment. The administrative/back-office duties are handled from corporate HQ. With a veteran staff and exceptional reputation in the marketplace, ROOSTER is primed for future growth.

Given its office locations in prime, growing markets, each market served could expand its current customer base. Given its mix of business and heavy emphasis on recurring maintenance work, ROOSTER is positioned nicely to combat any economic downturn. This business provides an exceptional opportunity for strategics seeking to expand its operations in the Southeast with access to 3 major markets in ROOSTER’s home state.

Culture matters here. This family business enjoys exceptional relationships with its customers, management and leadership. They seek a strategic or financial buyer who will fit well with their team, quality operations and customers.

The Company operates out of 3 locations in the Southeast. Real estate is owned by an affiliate entity and may be available.

BLADE, a multi-location, multi market commercial landscaping company provides maintenance, new installation, hardscapes, and snow removal services to a diverse client base. The combined mix of business between its locations is approx. 60% maintenance and snow, 37% installation, 3% hardscapes. BLADE has grown its maintenance revenue over the past few years to emphasize a recurring business model. Both locations are growing nicely, with one location in a rapidly growing MSA. Most new install clients transition into maintenance customers once the installation is completed.

The seller seeks a full sale. He is absentee from the business and enjoys strong operating managers at each office. The management team runs day-to-day operations and reports their performance to a central core team daily. Third generation family members handle financial oversight and HR/administrative duties. Service line managers handle their respective divisions. The Company is updated and equipped with industry leading software and technology. This technology investment has increased operating efficiencies and contributed to a nice annual growth rate of 7% over the past 4 years. The facilities are well kept with capacity to support growth. BLADE presents an intriguing opportunity to be a platform or a solid add-on opportunity for a large strategic.

Blade employs about 300 total employees including 100+ H2B team members across its locations.

The Company operates out of two locations on the East Coast of the U.S.

HAWK is a high-margin franchisee that specializes in water and fire damage restoration services based in a major Southeast market. 85% of revenue ties to water remediation and drying services. HAWK is unique in that they source their work directly from homeowners who have water or fire events, and then help the homeowner’s insurance company in resolving their claim. The Company does not perform reconstruction services. This allows them to get in and out of most projects in less than 5 days. This efficient operating model allows HAWK to enjoy ±25% EBITDA margins.

The Company’s founder was approached about franchising the concept a couple years ago and he’s allocated much of his time to building the franchisor, versus driving this corporate-owned unit. Several managers share time at this unit and in growing the franchisor. The motivation for sale is to get a strong operating franchisee in place so the owner can focus on growing the franchise business. HAWK has a strong management team that has been with the Company since its inception. Two shared employees will continue for 12-18 months or until the new owner finds strong replacements.

HAWK primarily services a 45-mile radius from its office. When the office gets a call, HAWK sends a sales person to inspect the project and work with the homeowner on assessing if a claim should be filed. Once HAWK receives a claim number from the insurance company, they send a 2-man crew to demo the damaged area, pick up contents and set up the equipment. The Company averages 6-8 calls per day resulting in 70-80 tickets per month. Average tickets range from $4,800 to $5,200.

The ideal buyer is a successful manager/entrepreneur with $3M+ net worth and operations experience. The owner believes there is a path to gaining 15-20% of overall market share through additional marketing and a sister location. Other growth opportunities include adding services and additional territories in tangential markets over time. There’s an opportunity for Master Franchise rights that would dramatically increase the territory size.

HAWK leases a 14,000 s.f. building (2-acres) from an independent third-party with quick access to the major interstates in its MSA.

The market for water and fire restoration services is excellent. HAWK’s owners believe the current geography generates $100-120M of water and fire restoration services annually. Many competitors are small mom and pops, others are larger franchises or regional players. However, very few of them have a similar model to HAWK where they sell directly to the homeowner when they have an event versus waiting for referrals from insurance companies.

This U.S. headquartered global manufacturer and sourcing business (“VOYAGER”) provides global OEMs with the components they need in a variety of commodity areas including metal parts, forged parts, plastics, harnesses and cables. North America (Mexico, USA and Canada) represent ±60% of sales. Europe and Asia each represent ±20% of sales, varying slightly by year. The Company has more than 40 engineers on staff, located at both plants and as part of their corporate engineering team, to help customers in manufacturing, engineering and prototyping for new parts. VOYAGER focuses on high mix and medium- to low-volume customer applications, averaging 27-30% gross margins consistently.

The Company has a full management team today. The sellers will participate in future ownership as a platform to a private equity group, as well as, review strategic roll-over opportunities on a case-by-case basis. The CEO, in his early 70s, seeks retirement and plans to transition out of full-time day-to-day leadership to board leadership over a 12- to 18-month period. Two other shareholders and senior executives, in their 50s, each bring more than 20-years’ experience at the Company and will stay to continue to drive daily operations. They seek to roll-over some of their equity. As noted, VOYAGER enjoys a deep operational management team that includes domestic and global CFOs, sales manager, sales personnel, plant managers, a rep network, a manufacturing manager, COO, VP Engineering and operations.

The Company owns or JVs manufacturing plants in multiple countries globally, as well as, sources specialty products from other manufacturers and uses those products in subassemblies, kits or as part of a supply chain solution to its customers. The benefit of these long-term relationships is VOYAGER gets to control and prioritize production for its customers, giving them a more reliable global sourcing supply experience. Few competitors provide five commodity areas plus prototyping and manufacturing engineering support.

Sourcing and supply chain management has never been as important as it is today. Companies that can provide a consistent supply of their customers parts and materials get more looks at new opportunities. VOYAGER is seeing increased demand for its services as other suppliers fail to meet delivery or quality commitments. When the owner was younger, he had the business generating over $120M in sales and very profitable. At this stage of his life, he’s content with 10% annual growth, but notes there’s plenty of room to double the business over five years.

There are many competitors for a single commodity like wire harnesses, stamped metal parts, CNC machined parts, plastic injection molding or forged parts. There are few companies that supply all these commodities. This gives VOYAGER a strong growth strategy by winning with one commodity, like wire harnesses, doing a great job with this commodity and then getting referred to other commodity managers to pick up other products in injection molding, stamped metal, machined parts, etc.