Transaction Overview
- Represented APG Cash Drawer, a subsidiary of UMI Company, in its sale to Private Capital Management.
- APG Cash Drawer grew from its founding in 1978 to become the nation’s leading manufacturer of heavy-duty cash drawers used in point-of-sale (POS) systems. Its products are targeted chiefly at high-traffic retail applications where the risk of equipment failure in the checkout lane must be minimized.
Key Observations
- APG offers a compelling value proposition to its customers: mission-critical products of the highest quality, made to order, with extremely short lead times. The company tracks customer-centric operating metrics and achieves 97%+ success rates for order accuracy and on-time delivery. Proven excellence in company operations gives buyers confidence that earnings are reliable.
- APG’s products represent only 5% of the total cost of a POS system. This fact, combined with the strength of APG’s value proposition, gives the company a high degree of pricing power.