Well-Established Ferrous-Metal Foundry

The Company is a 75-year-old, well-established, family-owned foundry located in Alabama. It specializes in grey- and ductile-iron metal castings and utilizes green-sand molding with automatic molding machines and jolt squeezers to provide a variety of highly specialized castings. The Company manufactures several types of castings such as meter lids, gears, bearing blocks, brackets, wheels, impellers, yoke clamps, and sprockets. The Business has many decades of experience providing parts for the agricultural industry, local governments, and a wide variety of other industries throughout the eastern United States. Key investment highlights: • Well-established, resilient business – The Company has weathered the storms of domestic and international changes in market conditions for over 75 years. It has a solid reputation for exceptional casting expertise and producing quality products at competitive prices. • Growing revenues – At present, the Company is experiencing increased demand from its existing customer base. Month-to-month sales averages for 2022 are outplacing month-to-month sales averages for 2021 by almost 20%. • Loyal, long-term, repeat customers – The Company has several long-term customers, one of which has been with the company since its inception. Foundation to support sustained growth: • Larger acquirer to expand – The Company has a stable, loyal, and repetitive customer base. An acquirer seeking to expand could quickly increase market share and diversify its customer base. • Conversion to a captive foundry – The Covid-19 pandemic has greatly disrupted our United States supply chain. A manufacturer seeking more control over its supply chain could acquire the business and convert its operation to produce only its products. This could minimize future disruptions in receiving critical parts for manufacturing. • The positive impact of reshoring – Global supply chain issues and American sentiment have caused a major shift to bring manufacturing back to the United States. According to Modern Casting (an industry journal), less dependence on imports reduces costs and risks related to distance (such as freight, delivery, and inventory) and to country-specific costs and risks (such as those associated with rising wages, IP theft, and political instability). Companies with local supply chains are better protected against future disruptions. This phenomenon has US manufacturing customers seeking to purchase from America-made suppliers, and the Company is well positioned to directly benefit from this shift Location: Alabama Year Established: 1945 Number of Employees: 10 Real Estate: Owned Building Sq. Ft.: 33,100 Facilities: The business is operated out of a 33,100 square ft. building. Market Outlook/ Competition: The business has limited domestic competition. Growth & Expansion: The business is experiencing unprecedented growth because of the global supply chain issue caused by COVID-19. Their growth is a direct result of domestic manufactures shifting to sourcing more "America Made" products.