Background

Eastport Operating Partners is a $100 million fund formed to purchase privately held basic industries companies in the United States. Eastport was formed with the involvement of J.P. Morgan as investment banker and as a significant Eastport investor. Eastport maintains ongoing J.P. Morgan commercial banking and investment banking relationships.
Eastports 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 Eastports exceptional acquisition deal sourcing and financing expertise. Even if an owner/manager wants to retire, we believe that the management to accomplish Eastports 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.

ACQUISITION RECORD

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

APPROACH

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 Principals operating and corporate development experience allows a good niche market company to grow through acquisitions to become a larger and more profitable company.

ACQUISITION STANDARDS

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.