Niche Leading Manufacturer/Supplier of Mission Critical Hardware and Components to the North American Shipbuilding Industry
7 Decades of Rich History, $10M+ Annual Revenue, Strong Long-Term Client Relationships
Based in the West with distribution across North America, the Company is a family-operated manufacturer producing high-quality electrical systems hardware used predominantly in military fleet manufacturing.
Since 2018, the Company has expanded both revenue and profit margins. Trailing twelve-month revenue totaled $10.5 million with adjusted EBITDA of $3.2M, a 24% Revenue CAGR and 105% EBITDA CAGR since 2018.
With a 75-year legacy in a $30B industry, and patented and highly visible hardware already in place across the US and Canadian fleets, this Company has built a reputation as one of the most trusted names in the segment.
Its decades of experience supplying the US Military and its most critical shipyards have created an impressive network of highly strategic customer relationships, enabling the Company to build a portfolio of products now standard in military fleets, securing sole-source supplier status in many projects, a reliable long-term replacement cycle, and high barriers to entry for would be competitors.
A record backlog of orders, substantial pipeline of military contracts, 30+ years of forward revenue visibility, and multiple potential avenues for growth present a compelling opportunity for investment either as a stand-alone entity, platform, or add-on for a larger value-added industrial hardware/electrical hardware, Aerospace & Defense or niche metal forming platform.
Purchase Considerations
- The Company, founded in the 1940s, is a family operated manufacturer producing high-quality electrical hardware for military applications.
- The Company’s products are considered top-of-the-line and continue to attract new clients and impress existing ones. The repetition and scale of its sales to the military are indicative of the quality of its work and dominance in this niche.
- The Company has positioned itself as one of the most creative and forward-thinking manufacturers in the industry having designed and delivered millions of electrical hardware components to substantially all applicable military shipyards in North America. In addition to manufacturing in the US, its products are known for superior quality and innovative design.
- The Company’s leased 25,500 sq.ft. plant serves as their corporate headquarters and manufacturing facility while its 27,500 sq.ft., powder coat facility next door allows it to control product quality & production delivery times.
- The Company’s products are top-quality and have been proved to stand the test of time, as a result, it is one of the few military specified producers of electrical hardware written into production standards. As a result, the premium pricing - and profit margins - are well-justified and easily accepted by buyers.
- The Company is well-positioned to transition to new ownership. Not only does it have access to military contracts and a long-term coveted customer base, but it also boasts impressive flexible systems and operates in a protected industry.
Certain principals of Raincatcher are registered representatives offering securities and investment banking services through Britehorn Securities, a registered broker-dealer (member FINRA/SIPC). Britehorn Securities and Raincatcher are not affiliated entities.
Negotiable - Buyout