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Eastport Operating Partners is a $100 million fund formed
to purchase privately held basic industries companies in the
Eastport’s principals search for
established well-managed profitable niche manufacturing companies that would
like to maintain their independence.
These companies should have management teams that have the ability to
grow their companies internally and work towards external growth utilizing Eastport’s exceptional acquisition
deal sourcing and financing expertise.
Even if an owner/manager wants to retire, we believe that the management
to accomplish Eastport’s objectives lies within the company and do not believe in bringing in
new outside managers.
Eastport believes that the rewards of successful investments should be shared with the management teams that create the rewards. We offer management opportunities to acquire substantial equity positions.
Companies
acquired in the past by the partners include the following product areas:
Product Lines
|
Gasoline Station Equipment Microwave Equipment & Components Industrial Compressors Welding Equipment/Products Specialty Valves and Pumps Candles Plastic Specialty Products Specialty Chemicals Process/Manufacturing Equipment Electronics Equipment & Components Oil Production Equipment Water Cooling Hydraulic Cylinders & Valves Money (bill to coin) Changing Equipment |
Parking Meters Food Service Equipment Hydraulic Elevators Veneer Products Cutting Tools Specialty Packaging Electrical Equipment Filtration Specialty Vehicles Bearings Meters/Instrumentation Steel Process Equipment Roll-Formed Components |
Eastport targets companies that have several key characteristics to ensure they are well positioned to benefit from a “buy-and-build” strategy. These companies should hold a leading position in a fragmented but promising niche market; benefit from significant and sustainable barriers to entry by competitors; and have a capable or augmentable management team, stable cash flows, low technology risk, and no significant customer or supplier concentration.
The
Principal’s operating and corporate development experience allows a good niche
market company to grow through acquisitions to become a larger and more
profitable company.
We are looking for niche manufacturing companies with revenues between $15,000,000 and $100,000,000. We prefer companies to have annual earnings before interest, taxes and depreciation margins of 8% or better. The companies are typically in established industries with relatively low technology.
EASTPORT PORTFOLIO
PYRAMID MOULDINGS, INC.
(http://www.pyramidmouldings.com/)
Pyramid is a 60-year old manufacturer of roll-formed decorative trim and components servicing the consumer appliance, heavy-duty truck, office products and other industries with sales approximating $40 million.
Pyramid is headquartered in
AMERICAN CHANGER, INC.
(http://www.americanchanger.com/)
American Changer is headquartered in
AMERIFAB, INC.
AmeriFab, Inc. is a $15 million
manufacturer of water-cooling systems, equipment and fabrications used
primarily in electric arc furnaces by steel mini-mill producers. Many of the products are patented and are
also applicable to basic oxygen steel furnaces, coal and nuclear power plants
and pulp and paper plants. The company
operates from a facility in
TEKNI-PLEX, INC.
Tekni-Plex is a global, diversified manufacturer of
packaging, packaging products and materials, and tubing products. They primarily serve the food, healthcare and
consumer markets and have built leadership positions in their core markets by
focusing on the vertically integrated production of highly specialized
products.
Tekni-Plex’s operations are primarily aligned under two
business segments: Packaging and Tubing
Products. The Packaging Segment
manufactures and sells plastic packaging and packaging products and materials
for the food, pharmaceutical, healthcare and consumer markets. The principal products of the Packaging
Segment include foam egg cartons, pharmaceutical blister films, poultry and
meat processor trays, closure liners, aerosol and pump packaging components and
foam plates. The Tubing Products Segment
manufactures and sells tubing for the consumer retail and healthcare
markets. The principal products of the
Tubing Products Segment include garden and irrigation hose, medical tubing and
pool hose. Products that do not fit in
either of these two segments are reflected in the Company’s Other Segment. Principal products of the Other Segment
include recycled PET, vinyl compounds and specialty vinyl resins.
Tekni-Plex has annual revenues in excess of $600
million and operates 35 manufacturing facilities worldwide.
Energy Manufacturing Co., Inc.
(http://www.williamsmachineandtool.com/)
Energy is a $30
million designer, manufacturer and marketer of hydraulic cylinders, valves, electrohydraulic and mechanohydraulic
power systems, and related components and accessories. The Company sells its products to a broad
base of more than 800 customers that includes original equipment manufacturers
in the refuse compactor, recycling bailer, truck hoist, agricultural,
construction, material handling, distribution, log-splitting and forestry,
aerial lift, and lawn and turf care industries, among others, as well as fluid
power distributors and catalog houses.
Energy is based in
Roberts-Gordon
Roberts Gordon is a $30 million manufacturer of gas fired
low intensity and high intensity infrared heating systems and warm air unit
heaters. The company is the domestic
market leader in the infrared heating segment with systems that transfer
“sun-like” heat by radiant energy and that are energy efficient alternatives to
conventional heating systems. End
markets include aircraft hangers, loading docks, greenhouses, warehouses, auto
body repair shops and showrooms amongst others.
Plants are located in
Eastport welcomes any thoughts you may have for potential acquisition candidates either add-ons or new business platforms. In the former case, revenue is irrelevant. For new businesses we think a minimum of $15-20 million revenue is appropriate.
You should know that our policy is to pay fees to buy-side brokers.
J. ANDREW MCWETHY brings 35 years of acquisition and investment experience in the basic industries sector. For the ten years prior to co-founding Eastport he was President and co-founder of MST Partners, a predecessor fund. For the thirteen years prior to MST, he managed the private equity investing arm of the Bank of New York (formerly Irving Trust Company). Prior to Bank of New York, he spent nine years with the investment activity of Security Pacific National Bank.
EDWARD
J. KATA
brings 32 years of experience to Eastport as a corporate development
professional and as an operating manager.
During his thirteen years at Dover Corporation he was responsible for
the formulation and execution of
DR.
F. PATRICK SMITH brings 25 years of experience as a business operator to Eastport. Dr. Smith, in his capacity as Chairman and
CEO of Tekni-Plex, Inc. and WFP Corporation, two of
MST Partners’ portfolio companies, has proven highly skilled as an operator and
adept at realizing the benefits of add-on acquisitions. Dr. Smith applies his operational expertise
to identify and analyze potential investments and to be available to the
management teams of Eastport’s portfolio companies.