Fluid Flow Products, Inc. Tombstone

Case Study – Buy Side and Acquisition Financing

Fluid Flow Products, Inc. distributes and services valves, instrumentation and filtration products for the food & beverage, pharmaceutical, chemical and energy industries.

Situation:

  • Fluid Flow is a 100% ESOP-owned company and management wished to grow through acquisitions to expand its market presence and reduce reliance on a key supplier
  • Having sold a portion of its business that was tied to a specific supplier, Fluid Flow had significant cash on its balance sheet available to support an acquisition strategy

Challenges:

  • The market for industrial product companies is highly fragmented and asset-light
  • Anderson LeNeave implemented a structured acquisition search process, which resulted in identifying a specific target list of 52 companies.  Anderson LeNeave contacted all targets at the C-Level, organized numerous exploratory meetings and assisted in negotiating letters of intent.

Successful Solution:

  • Fluid Flow significantly expanded its product offering, now operates in nine new states and more than doubled its revenues and EBITDA
  • Anderson LeNeave arranged $12 million in acquisition and working capital financing through Wells Fargo to facilitate the transaction