Acquisition Opportunity – Specialty Vehicle HVAC Manufacturer

By: Frances Brunelle

Specialty Vehicle HVAC Manufacturer

Accelerated Manufacturing Brokers, Inc. has exclusively listed a specialty vehicle HVAC system manufacturer. This ISO-Certified manufacturer serves OEMs in the military, transit bus, construction, and specialty electric vehicle markets. All the markets they serve would be considered “harsh environment,” rather than consumer in nature, with some vehicles being required to run 24/7.

In their military markets, the Company is the sole source of the HVAC products provided and was involved in the design process for these military vehicle systems. As the sole source for these products, the required RFQ process is just a formality. Based on current requests for these products, it is anticipated that $9MM will be added to Company sales between 2021-2025. Similarly, legacy products for the transit bus industry will add an excess of $450K to sales in 2021.

Specialty Vehicle HVAC Manufacturer

In addition to the initial HVAC systems, the Company sells a large volume of replacement parts. Interestingly, they choose to sell these parts through distributors or contractors, rather than direct, so as not to be involved in the administrative process, packaging and shipping of replacement parts.

The Company is an industry leader with a respected 70+ year history. They’ve thrived through various ownerships, changes in markets, and changes in technology. They are well poised for growth in their core markets and in the newer electrical specialty vehicle market. The Company operates in lean principles, has strong managers in place and standard operating procedures. They’ve laid a strong infrastructure and brand, setting up the next acquirer for success.

Revenue (in current dollars) for US military armored vehicles, tanks, and parts production is forecast to grow at an annual compounded rate of 5% between 2019 and 2023.

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