Current
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PURITY is a leading water safety and compliance company serving municipalities, industrial customers, and healthcare systems across the Midwestern and Eastern US. The Company enjoys a highly recurring revenue stream supported by multi-year contracts and consistently generates 20%+ EBITDA margins. Annual top-line growth averages 12.4% over the past five years and trending at similar levels in 2022. Services offered by PURITY are state mandated and enforced by local municipalities to ensure safe drinking water to the public resulting in a stable and predictable cash flow profile.

In recent years, the Company invested $1M+ on a proprietary software platform that is currently being commercialized as a subscription based SaaS application sold into municipalities. Approximately 65% of revenue is scheduled monthly or annual billings with the balance driven by contracted service billed by occurrence. Revenue and operating profits are very stable and reliable month-to-month.

The Company is led by a strong executive team comprised of industry veterans and supported by a certified (non-union) workforce – total headcount today is approximately 88. Many of the key leaders are well-credentialed and hold training certifications to help build and develop the workforce. As a human capital intensive business model, PURITY prides itself in providing in-house training and competitive pay and benefits packages. The Company’s culture is centered around integrity, professionalism, and being the industry standard which has resulted in market leadership for nearly 40 years.

In their mid/late 60’s, the two shareholders seek to align with an experienced capital partner or strategic acquirer that will support continued growth and professional development. One of the owners is semi-retired today and works part-time out of his Florida residence – he desires to phase out fully within the first 12 months as his role is minimal in the business today. The other shareholder is acting CFO and open to supporting a 2–3 year transition. Both are open to retained equity and taking a longer term consulting or board level role going forward. The remaining management team is fully capable of running the day-to-day and eager to align with a growth oriented partner. Additionally, the opportunity for management to participate in equity or equity-like incentive plans is viewed favorably.

The Company leases one facility (±6,000 s.f.) in the Midwest.

Water quality and public safety is front of mind as local municipalities and utilities face continued regulation on protecting our most critical asset – WATER! Historically, local municipalities have relied on internal resources for test & inspection services. However, as state and local budgets tighten and the trend towards outsourced municipal services expand, PURITY is well-positioned as an industry leader to be the trusted, outsourced vendor of choice for these necessary test & inspection services. Additionally, PURITY’S domain expertise and best-in-class technology suite generates operational efficiencies resulting in cost savings for customers and an enhanced margin profile for the Company. The path towards growth includes continued geographic expansion, adding complementary service lines, and commercializing the newly developed SaaS platform on a national scale.

This commercial HVAC service company based in the Southeast (“BRAVO”) provides replacement, retrofit, and maintenance services with no exposure to new construction. BRAVO currently focuses on state facilities, hospitals, K-12 schools, universities and other institutional facilities. They are fully licensed in their home state and adjoining state with many mechanical licenses. The Company has ±25 employees with a revenue/employee of over $450,000. BRAVO enjoys an EBITDA margin of 10%.

You’ll find BRAVO to be a high-integrity organization with a strong reputation for quality work. The Company has a solid management team in place today. The owner is late 50s and will stay on for 4-5 years post-close. Next generation leadership is in place and drives most of the daily operations. The owner seeks a growth equity opportunity where he can roll over some equity while also providing a similar opportunity for the younger managers. BRAVO’s experienced leadership, deep expertise, and core employee base put the Company in a fantastic position to expand their customer base and broaden their service offerings. The ideal partner has a platform in place and experience in the commercial HVAC industry to grow and professionalize the Company.

The Company operates in the Southeast from one core facility (4.3 acres). They are currently building a new 3,800 sq. ft. office space and will convert their existing office to warehouse space once construction in completed.

The market for commercial HVAC replacement is competitive with other local/regional players working to win similar work. However, the Company differentiates itself by performing highly ethical and sound quality work. Where others seek to cut corners, BRAVO never compromises the quality they are known for. This has made them a trusted partner for the state facilities and educational institutions of their area.

With the COVID-19 pandemic, many facilities are turning their attention to the quality and efficiency of their systems. BRAVO’s diverse expertise and experienced team positions them to take advantage of these tailwinds to continue their growth.

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.