Current
Engagements
VOYAGER: $77.2M Revs/$14M EBITDA U.S.-based Global Sourcing & Manufacturing Co
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Revenue
$77,156,000
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Cash Flow
$14,018,000
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Inventory
$11,797,000
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FF&E
$1,482,000
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Location
Global
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.
Facilities
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.
Market Outlook / Competition
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.