Current
Engagements
Seahawk: $7.35M Rev, $1.54M EBITDAR Water Treatment Equipment OEM
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Revenue
$7,350,000
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Cash Flow
$1,544,000
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Inventory
$2,400,000
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FF&E
$491,000
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Real Estate Available
included - FMV $1.5M
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Location
U.S.
Download NDA
This 40+ year old equipment OEM to water treatment facilities ("SEAHAWK") seeks a new owner. SEAHAWK products are used in a variety of industrial and municipal water treatment applications. SEAHAWK assembles its products from components provided by its suppliers. Operations are easy and straight forward. Sales come from reps, web inquiries, or tradeshows. Approximately 50% of sales are for replacement parts from its long-term installed base of systems.
This business is one of many owned by the seller. In fact, the President spends about 10% of his time on this business and 90% on other businesses. He typically visits this operation once a quarter. It’s not been run with a focus to grow it, rather, it’s run to achieve certain profitability. There are several easy initiatives that will materially impact growth.
The current President oversees several companies for the owner and retains a small stake in this business. He’s open to staying on board and being part of the go-forward plan. He is also open to strategic buyers who acquire the operation and integrate it into their own operations and sales systems.
This will be an excellent company as an add-on to water treatment plant equipment OEMs or as a small platform for someone looking to do a “buy-and-build” in the water treatment equipment space.
Facilities
The company leases its facilities from a related-party entity. The sellers anticipate the real estate will be included in the transaction (FMV $1.6M). The real estate includes unique water facilities for testing the equipment the Company sells.
Market Outlook / Competition
SEAHAWK has seen moderate growth over the last 4 years. Given its 40+ year history, the Company enjoys the benefit of thousands of installed units representing potential future replacement product or part sales. This business is sleepy. It enjoys a responsible onsite day-to-day manager. The President is remote and oversees several businesses from ±1000 miles away. The business will benefit from dedicated focus.
There are various competitors who provide equipment to perform the processes provided by the Company’s products. Management estimates the annual market for its specific products is $60M-$75M annually. The President would focus on growing through acquisition to pick up 4-5 other products that are also sold to water treatment facilities.