Bain & Company recently reported that the amount of committed but unallocated capital (dry powder) held by private equity firms now stands at $3.7 trillion.
Here are 7 Manufacturing acquisitions that can help put that capital to work before the end of 2023:
- Precision Sheet Metal Fabricator – Customer relationships spanning 40 years over 2 different owners. They are sole source to publicly traded companies in the semiconductor and medical instrument sectors. Sales over $14MM, adjusted EBITDA over $2.2. Incredibly strong managers in place. Ultra-modern equipment, including robotics. This is a great addition to a multi-unit fabrication house or a large CNC operation that needs to add strong fabrication capabilities.
- Plastic Injection Mold Base & Specialty Tool Manufacturer – Known for quality and large capacity work. Sales in an upward trajectory with no company promotion. Managers have been promoted from within, and the Sellers live out of state. Sales over $7MM, and adjusted EBITDA over $1.4MM. The Sellers have run this business like it’s not for sale – continual improvement. A robust ERP system provides full visibility into the business. This opportunity is great for mold builders and plastic injection molding companies that need to pull that function in-house to control quality and timing.
- Manufacturer of Smoked Pork Products – This is a 4th generation company. In the last few years, they’ve completely modernized with state-of-the-art European cutting, portioning, and packaging line. Private-label long-term contracts in place. Some customer relationships span over 70 years. The recent implementation of lean manufacturing principles and SKU reduction to focus on higher-margin items have profit margins and net earnings on the rise. This is the perfect acquisition for a pork products company that needs additional capacity.
- Manufacturer of Vegan & Vegetarian Alternative Protein Products: One of the oldest brands in the nation. Only working at 25-30% of plant capacity with a seasoned team in place. This is a great opportunity for companies that are using co-packers and want to bring their production in-house. Accomplish that and, in the process, acquire an 80+-year-old brand.
- Manufacturer of Harsh Environment Custom Signs, Labels, and Tags. This company, operating for over 30 years, has incredibly strong relationships servicing the electric utility, petrochemical, telecommunications, and industrial sectors. Gross Margins of 64% and net income of 40%. New on the market, and it won’t be on the market long! This is a great addition for a strategic buyer already in the market but serving different sectors. A relatively easy manufacturing process makes this a great acquisition for almost anyone!
- Sheet Metal Fabricator – This company also focuses on tight tolerance and cosmetically critical work, but they are more focused on the medical sector than semiconductor. Very similar to the one mentioned above, but smaller. Strong management and systems in place make this a great bolt-on to the above company. Both are in the same region.
- Northeast-Based Plastic Injection Molding Company – This is a fourth-generation family company that is the sole source on products made for a publicly traded semiconductor giant. Oops, too late. We just got an LOI on this one. We’ve got two other injection molders in the pipeline, likely coming to market in the next 30 days.
If you’re interested in any of these deals, you can access teasers and electronic NDAs HERE.
On the same page, you can sign up for our “listing alerts”. You’ll get notified of our new listings BEFORE we begin our national marketing campaign. Sometimes a little head start is a good thing.
We’ve got a seller pipeline of over $210MM in quality manufacturing companies. We only list top-quality manufacturing companies, and we sell nationally.
The above 7 manufacturing acquisitions will put your capital to work before we close 2023.