EASTPORT OPERATING PARTNERS

http://www.eastportlp.com/

 

841 Broadway, Suite 504

New York, New York  10003

(212) 674-1900

(212) 674-6821 - Fax

amcwethy@eastportlp.com

ekata@eastportlp.com

 

 

 

 

 

 

 

 

 

 

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.

 

 

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 Green Cove Springs, Florida with manufacturing plants in Chicago, Illinois; Rossville, Georgia; Green Cove Springs and Queretaro, Mexico.  Eastport believes that Pyramid and its management team represent an excellent platform for a series of add-on acquisitions in the custom roll-formed products and components business.

 

 

 

 

 

 

AMERICAN CHANGER, INC.

(http://www.americanchanger.com/)

 

American Changer is headquartered in Fort Lauderdale, Florida and is a manufacturer of coin, bill changing and specialized niche vending equipment.  With a current annual sales rate of over $15 million Eastport believes that Changer and its management team represent an excellent platform for a series of add-on acquisitions in the niche bill/coin changing and vending equipment manufacturing businesses.

 

 

AMERIFAB, INC.

(http://www.amerifabinc.com/)

 

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 Indianapolis, within 500 miles of 80% of the steel mini mills in the U.S.

 

 

TEKNI-PLEX, INC.

(http://www.tekni-plex.com/)

 

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 Companys 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.energymfg.com/)

(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 Monticello, Iowa.

 

 

 

 

 

 

Roberts-Gordon

(http://www.rg-inc.com/)

 

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 Buffalo, New York and Bilston, United Kingdom.

 

 

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.

 

 

THE GENERAL PARTNERS

 

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 Dovers acquisition strategy.  In this capacity he purchased over 60 companies within the basic industry sector.  Before Dover, Mr. Kata spent nine years as Director of Planning and Development for the Thyssen Bornemisza Group, a European industrial conglomerate, where he purchased 30 companies.  From 1995 to 1999, Mr. Kata was a partner at Full Circle Investments, a private equity limited partnership, where he purchased 12 basic industrial companies in areas such as welding, electronic enclosures and precision machined components.

 

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 Eastports portfolio companies.