Current
Engagements

SATURN, a one-stop, diverse environmental services provider seeks a majority recap to support the continued growth of their proprietary service offering that’s driven 47% CAGR from 2021 to 2023. An experienced team offers multiple solutions to address environmental services around regulatory compliance, testing, clean-up and sustainable disposal of hazardous and non-hazardous materials. Their services include permitting and licensing, environmental site assessments & testing, compliance monitoring, waste evaluation, treatment and handling, hazardous waste management, industrial hygiene, storm water inspections and maintenance, and underground storage tank services. SATURN's commitment to excellence and sustainability makes them a trusted partner in navigating complex environmental issues for multi-site service operators across the United States.

While the Company enjoyed exceptional growth the last three years, they’re in early innings given recent environmental IP development. They seek a proven growth partner with experience in environmental and industrial services to support this growth.

Saturn notes they have not seen another individual company providing their value proposition and solution to the market. When customers learn of it, they typically terminate relationships with multiple vendors to get the total environmental solution offered by Saturn. The Company is currently contracted with three of the top ten operators nationally who require their services and are in meaningful conversations with others.

What we love about Saturn:
Saturn’s business is comprised of thousands of small ticket service items ($100-$500). Most customers engage with the Company via multi-year Master Service Agreements outlining the specific fee for services. The Company performs consistent routine services that often uncover additional services to increase the visit from a basic $100 fee to a $500, $1,000 or $10,000 service. The base service and other services are regulated and required. Given their one-stop shop and proprietary disposal solution, they are gaining market share at a rapid rate. This is a highly predictable business.

As a result of recent growth investments and the development of their proprietary IP, the Company is getting inquiries for services beyond what they can handle today. This is a growth investment where management will stay, retain a meaningful equity tranche and drive SATURN for the next 4-6 years to take advantage of its IP and strong market demand.

SATURN offers full service to many customers where it has infrastructure to support those services, and partial service to others where they haven’t fully built out their infrastructure. Management’s goal is to expand facilities to offer full services to all customers and to be the de facto leader in its offerings nationally. They expect to achieve national coverage within 5-6 years with the right partner.

SATURN's capabilities are only recently gaining national traction and attention. Their IP provides an environmental solution for customers that incumbent service providers don’t offer. Furthermore, being a one-stop-shop has provided the Company with a significant advantage over its competitors. The regulatory environment for the services are complex and often outside the core experience set of facility managers. The owners of the facilities appreciate off-loading these regulated services to professionals who have a better solution for their business, their managers and their facilities. The right buyer will discover SATURN as an excellent opportunity to grow with existing customers and capitalize on their recurring revenue from a range of services.

ASTRO is a complex-part precision CNC machine operation, holding AS9100D and ISO 9001:2015 certifications. The Company enjoys great margins and specializes at producing prototypes (20% of sales) and handling low to mid-volume production (80% of sales) for various industries, such as medical, aerospace, robotics, electronics, and more.

In business for over 40 years, the Company offers a variety of capabilities resulting in quality parts serving many long-standing customers. Their customer list includes large companies, universities and research organizations requiring complex solutions. ASTRO provides highly-automated precision solutions, with excellent palletizing capabilities to drive lights-out operations.

The Company is operated by a robust management team and a talented machining staff - approx 20 total employees. Owners will consider growth recap or full sale scenarios. They are open to a significant rollover with proven operators.

Company operates in approx 21,000 with some room for additional growth in their Southeast region. Company has invested heavily in new equipment over past 5 years.

ASTRO operates out of a metro area with significant healthcare and technology presence. Ample opportunities for growth with existing customers and new accounts.

"CLOVER," an eastern USA based residential and commercial chemical application and landscape company enjoys healthy EBITDA margins of 15%+. This multi-location company generates revenue from lawn and shrub chemical applications for nourishment and weed control, as well as, landscaping services. Landscaping includes design & maintenance, mowing, snow removal, tree pruning & removal. Landscape maintenance services include edging, mulching, and perennial cutbacks.

Breakdown of revenue by services (2022):

- Lawn care applications $6,549,842
- Landscape maintenance $2,756,179
- Landscape design $2,637,731
- Tree & shrub application $1,488,759
- Pruning & removal $955,412
- Snow $171,967

CLOVER serves a diverse customer base of residential and commercial clients. Lawn application services are 65% residential and 35% commercial. The Company serves 8,000+ customers with 4-6 chemical applications annually. Landscaping services is tailored more towards commercial clientele but will also service a few residential properties. CLOVER employs a fully e-verified workforce across its two locations.

The 70-year owner seeks a full sale. He is minimally involved in the day-to-day operations as he has an independent management team including, general management, finance, sales and operations. Equipment is fully updated and in excellent working condition.

CLOVER seeks a humble buyer with experience in chemical applications and landscaping businesses. We will entertain both financial and strategic suitors. The owner will be fully cashing out but expects a few of his key managers to participate in ownership if the opportunity is extended. There is plenty of room for growth organically and through strategic acquisitions in the local market and major surrounding MSAs.

The Company operates out of two facilities in the Eastern U.S. with approx 48,000 s.f. of outbuildings.

The U.S. landscaping services market is $177 billion in 2023 and has grown 8.1% per year on average over the past five years. Growth is driven by enhanced property values from having well-manicured lawns and quality curb appeal. The overall landscaping market is highly fragmented with thousands of businesses providing services covering commercial and residential markets including design, maintenance, enhancements, chemical applications, tree & shrub, and snow removal.

While there are many landscaping providers within CLOVER’s market, the Company developed a stellar brand reputation over the course of several decades. Given CLOVER’s heavier focus on lawn care and chemical applications, they do not face as much competition compared to commercial maintenance and design services. In fact, they are one of the largest privately-owned and non-franchised applications business in its market and enjoys a customer retention rate of greater than 90%. Customers expect quality services and healthy looking lawns when using CLOVER, and the Company delivers.

"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.

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.

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.