Following on from the success of 2020, Faison Capital has identified new opportunities in the U.S. lower-middle market growth company sector. Our investment call requires an initial $8.3M to fund the purchase of the first three of these targets.
By submitting this form you confirm that you agree to the storing and processing of your personal data by Faison Capital as described in our Privacy Statement.
This business is the perfect acquisition for Faison given our experience of LEAN manufacturing principles, SKU Optimization, distributor management, product innovation and of course the largely untapped online retail space. There are so many functions which can be streamlined and opportunities to increase revenues with exposure to, and distribution into additional domestic and international markets.
3 Year Average EBITDA – $525,000
Purchase Price $2,100,000
Extreme Machine Parts Unlimited launched as a small family-owned business in Painesville, Minnesota by its current owners in 1996. Their original product line was mostly bicycle accessories (frame paks, stem paks and hand guards) that required industrial cutting of neoprene and other cloth materials. Their Minnesota location afforded them to expand their product lines into the Snowmobile space for an army of long journey and back country snow mobile enthusiasts.
They identified a niche opportunity for other aftermarket Snowmobile parts and accessories and eventually broadened their product offering to include a myriad of parts and spares, manufactured and produced in house. Extreme Machine Parts Unlimited is now the leading manufacturer in several product categories and is a recognizable and desirable brand for snow mobile riders worldwide.
In 2017, the current owners had maxed out the desirable labor pool in their small town and were having trouble filling skilled sewing and manufacturing jobs, so they made the decision to move to Glendale, Arizona.
During Covid-19 the plant was shut down for approximately 2 months and an already maxed production plan became backlogged with several weeks of orders. The backlog of orders has reached a point where the direct-to-consumer sales have been suspended, so they can focus on fulfilling the huge demand from distributors.
Furniture Manufacturing Unlimited is a nearly 30-year-old business that has seen unprecedented success due to its high-quality ornamental metal working and specialized powder coating. The combination of artistry mixed with functionality has helped the business to grow steadily and see increasing profits year on year. Despite attracting and serving a variety of high-profile customers, the business has also made sure to continue to keep strong ties to the community by completing individualized, small, custom orders.
Designers help every client to create the perfect piece of furniture for their home or business, whether it is utilizing their pre-drawn designs, integrating a logo or other reference art, or creating something entirely unique based on an idea. Thanks to the powder coating process utilized by Furniture Manufacturing Unlimited, all the metal furniture they produce is practical for both indoor and outdoor use. Furniture Manufacturing Unlimited creates a wide variety of products including everything from patio sets, to beds, benches, chairs, plant stands, wine racks, metal signs, warehouse tables and more. Each item can also be customized further with a variety of colours and finishes available. Generally, if a customer has an idea, one of their talented designers can help bring it to life.
The manufacturing process centres on computer aided design matched with precision plasma torch technology. This combined with the welding expertise of their highly skilled team ensures that each piece of furniture is handcrafted to perfection. Furniture Manufacturing Unlimited only uses the finest American made steel, this combined with the specialized powder coating process prevents any kind of rusting or fading, ensuring the finished products last for years to come.
A prime target for Faison Capital, this business has a proven track record for manufacturing outstanding products and delivering profit. It is however, shackled and being held back from stella growth. As with Bluecorn, Faison Capital will impose technology, distribution and marketing solutions which will transform Furniture Manufacturing Unlimited and allow it to compete and succeed in markets across the U.S. and beyond.
2020 EBITDA $510,000
Purchase Price $2,000,000
A 50 year old business steeped in heritage and with a proud record, it delivers consistent profit but is now primed for growth. Faison will again overhaul existing resources and implement technology, distribution and marketing strategies to open up new markets and customers. With this acquisition we also gain 20,000 sq ft of real estate and 5 acres of land This will become a distribution centre to store finished goods from other portfolio companies prior to retail shipping
2020 EBITDA $827,000
Purchase Price $3,499,000
(Includes Real Estate)
General Machine and Tool specializes in metal manufacturing & fabrication from two locations in Illinois.
Over 50 years old, they have committed to providing the best possible service and products to its customers since 1968. General Machine and Tool offers complete machining services from prototypes to complete assemblies to high-level production. The company can rebuild, and repair worn parts, create custom designs, and fabricate machines of any kind.
Total quality is incorporated at every point of manufacturing from the receipt of materials to the shipment of finished products.
• Steel Mills
• Oil Refineries
• Power Generation
US based company, this fantastic opportunity sells high-performance motorcycle parts for USA made models along with their own custom makes. Doing all their design, manufacturing, and eCommerce in house, this niche company has a strong brand personality and an industrywide reputation for quality and expertise. Focused mostly on their custom motorcycle parts, this highly lucrative company provides more than 172 SKUs and is a market leader within this very specialized space. Hiring only proven experts, this business crafts high performance parts of the best quality and function. Utilizing a remarkably impactful framework, this target has a strong history of 60% Year Over Year growth which has skyrocketed to reach a whopping 137% growth in net profit in the 2019-2020 year. With tremendous growth, 36.7% net margins, and an average order value of $396; this company offers phenomenal revenue and ever-increasing potential.
A highly regarded custom motorcycle aftermarket parts designer, this company operates on a 100% inventory model. Creating proprietary, industry famous motorcycle parts such as suspension kits, relocation kits, engine mounts, brake rotors, mid controls, and dash covers. Carrying an average order value of $396.46 and more than 172 unique SKUs, integrity and excellence are what this brand is renowned for.
2020 EBITDA $906,000
Purchase Price $2,650,000