Mergers & Acquisitions Opportunities

Family Office is Acquiring Midwest Manufacturing and Distribution Companies

Focus Capital has been retained by a high net worth family office to locate one or more successful and profitable manufacturing or distribution companies for acquisition.

This is a unique opportunity because our client is prepared to pay above market valuations for superior companies and is also flexible regarding the current owner’s interest in retaining equity. A situation in which the current management will stay on is ideal.

The search characteristics can be summarized as follows:

1.         Successful manufacturing company making branded B to B products.
2.         Located within 300 miles of Chicago.
3.         EBITDA from $1-10 Million.
4.         Capable Management Team.

Electronic Media Services Company

Founded in 1983, the Company has become a leader in the growing market for Electronic Media products. From its humble beginnings the business has evolved into a solid team of 75 people serving a national customer base from an impressive 53,000 square foot facility. The Company is a dominant player in the publishing industry and will process over 15,000,000 CDs, CD-Rs and DVDs in 2006.

Over the last five years, the owners have steadily reduced their involvement and allowed a very talented General Manager run the day to day activities of the business including a solid in-house sales staff, two dozen customer service and support staff and up to 45 non-union productions staff.

The blue-chip customer base is focused on Educational Publishing (50% - 60%), Corporate Communications (30% - 35%), such as Financial Services and Computer Manufacturers, and small independent Recording Labels (5% - 7%). While the market area is national, the customers are primarily located in the Midwestern and Northeastern part of the United States. Growth is coming from the active use of CD, CD-R and DVD technology as the preferred communications media. A typical production project may include design ideas, vendor specifications, packaging and fulfillment with the entire process as short as a few days to a as long as several months depending on the customer’s needs.

Sales have already surpassed $15 million in 2006 spread over several hundred customers with a recast EBITDA exceeding $2.5 million.

High end Closets and Storage Solutions Provider

The 2007 sales are expected to reach $2.2 million which equates to a growth rate of almost 30%. The business is very profitable for the owners and the quality of the staff is exceptional. Currently the three owners share in the day to day running of the business while they also pursue separate outside business interests. Over the last eighteen months all three owners have been become more and more involved in Real Estate Development and have transitioned most of the day-to-day operations to a very talented group of employees. This has created the desire to exit the Closet business, after a reasonable transition period, and sell the business so they can concentrate on these new opportunities.

Central Illinois Warehousing, Packaging and Transportation Services Company

This substantial regional warehousing, logistics, packaging and transportation services provider has been a steady performer since inception with ample capacity in its 306,000 square foot facility in Central Illinois.

The food grade facility is ideal to distribute dry packaged goods to the entire nation from its central United States location. Rural Illinois allows the Company to offer warehousing/packing rates and services that give its customers a competitive advantage. The current equipment, technology and facility are all in place to continue solid growth in its 2007 revenues of approximately $5 million. EBITDA is expected to approach $1 million again in 2007. Excess land allows for the ability to add another identical building along the rail spur.