Transaction Overview
- Represented Engineered Products Co. (“EPC” or the “Company”), a portfolio company of Spell Capital, to Donaldson Company, Inc.
- EPC is a leading designer and manufacturer of highly-engineered air and fluid measurement and monitoring solutions primarily used in vacuum and/or pressurized filtration systems.
Key Observations
- EPC was seeking a partner to support the next phase of its growth strategy and to provide liquidity to stockholders after successfully introducing new products with significant new market and geographical growth potential.
Drivers of Interest
- Globally recognized brand with engineer-to-engineer technical selling model.
- Low-cost, high-value-add solutions for critical applications.
- Large customer base with limited concentration.
- Spec’d in positioning across programs and platforms led to stable and highly visible revenue base.
- Balanced and diverse end-markets with attractive long-term growth potential.
- Asset light manufacturing model.
- Compelling financial profile with strong forecasted revenue and EBITDA growth.
- Numerous growth opportunities supported by a robust pipeline of new product opportunities.