BAMA is pleased to present the growth recapitalization of “BLAZE”, a $49M (2020) packaging products distributor and manufacturer with exceptional leadership, management, sales, marketing and customers. Products include specialty packaging solutions, stretch film, corrugate, various void and fill solutions, strapping, packaging equipment and machinery, as well as, custom solutions.
The Company grew approximately 27% from 2019 to 2020 and expects comparable growth in 2021 with a budget of $62MM. The Company’s gross margins grew 3.8% from 2019 to 2020 as it added more higher margin products and services for its customers and realized return on strategic pricing initiatives. Adjusted EBITDA grew approximately 105% to $4.2MM from 2019 to 2020 as the Company leveraged its robust infrastructure and fixed costs and generated a return from growth investments driving top-line and bottom-line performance. Don't let the margins fool you. The Company generates 26% average gross margin and invests a lot in SG&A to drive growth right now. There is a lot of potential here.
This is a majority growth recap where management seeks to be the platform to grow organically and through acquisition. The Company has excellent relationships with similar companies in other markets who have expressed interest in being acquired by BLAZE. The owner seeks to own 30-40% of the equity going forward and use the growth recap to get several key managers and leaders engaged in ownership.
We seek a culturally like-minded, experienced partner who has supported other packaging product companies in their growth. This is a great place to work with no turnover in sales staff, strong customer relationships and no customer concentration. Cultural fit is critical in selection of their future partner.
The Company leases 100,000 s.f. of office, warehousing and manufacturing space.
Market Outlook / Competition
There are several national players along with regional/mom and pops in the packaging distribution space. BLAZE sets itself apart from the competition by offering unique, customer-centric solutions to meet any need. They have outstanding relationships with their customers - who continue to trust BLAZE year after year for their packaging requirements. Company is expanding into clean room packaging for medical customers.
The seller is aware of several specific add-on opportunities - companies in the packaging space who would love to be part of the BLAZE family. They have begun conversations with the owners of these companies and noted their intent to grow through acquisition.