Industrials

General  Overview

We are focused on acquiring and managing middle-market manufacturing and value-added distribution companies, typically with revenues between $25 million and $250 million.  The primary goal of our investment focus is to enhance the operations and to optimize the cost structures of the businesses we acquire.

Our investment and operating professionals have extensive backgrounds in acquiring and operating middle-market manufacturing companies.  Specifically, our staff is comprised of seasoned professionals with the ability to guide and assist management teams in order to drive operational improvements, implement lean manufacturing initiatives, accelerate cost structure improvements and pursue growth opportunities.

AFLG Investments is a “hands-on” acquirer capable of pursuing a broad spectrum of investment situations.  Accordingly, the investment targets are profitable companies requiring additional management or other support to reach their full potential.

 Strategies

• Manufacturing or value-added distribution businesses
• Companies with revenues generally between $25 million and $250 million
• Defensible market, customer and product positions
• Solid long-term industry fundamentals
• Identifiable and achievable improvement and/or growth opportunities
• Strong incumbent key managers
• Target companies with a minimum EBITDA of 4 million
• Capitals can be invested in established funds with solid track record and delivering an expected two digits internal rate of returns

Criteria

• Companies with an annual revenue of US$ 25 to 250 million
• Industrial or manufacturing based businesses
• Broad industry focus
• Privately-held or publicly traded companies
• Companies with enough cash flow to use financial leverage
• Under-managed, turnaround, distressed or extraordinary growth situations
• Controlling or minority equity positions, but with operational control

Focus

We are focused on making investments in a wide range of manufacturing and value-add distribution businesses, with a base of operations in any region of the world.

Partnering with management in creating value

We believe that a committed and motivated senior management team is critical to the success of its investments:

• Senior management will be a key partner to develop and support the execution of well-defined and achievable strategic and operating plan.
• Management teams should share in the financial success of our investments and we seek to align their interest with ours.

Strategies for value creation

• Address operational or cost structure challenges
• Supplement management team
• Accelerate growth initiatives
• Aggressively manage cyclical or transition issues
• Execute transactions with complex organizational or operational challenges