Kinsella Group sourced a strategic add-on acquisition for a Family Office investor's portfolio of medical contract manufacturing businesses. The opportunity was not actively marketed but developed through Kinsella Group's knowledge of and contacts in the medical device contract manufacturing sector.
The Acquirer has established a strong presence with two existing businesses in the orthopedic implant and instrument contract manufacturing industry. Kinsella Group saw an opportunity to acquire a synergistic business that would add process expertise and depth to the Acquirer's existing businesses, while also adding complementary new products. The Acquirer plans to dramatically grow the business through the addition of production capability and a long term vision.
The Target makes highly complex medical instruments used in orthopedic applications and precise tooling used in the production of stents and catheters by large medical OEMs. The Target maintains an expertise in highly precise manufacturing capabilities and also has recently added clean room assembly capability to its suite of services.
This closed deal was one of ten active discussions ongoing with medical device contract manufacturing sector participants regarding sale to the Acquirer, all sourced by Kinsella Group.
Kinsella Group represented a private company in the purchase of a strategic add-on business which met the objectives of the Acquirer to broaden its product offerings and served markets.
The Acquirer is a leading manufacturer of sensors used on the exterior of aircraft to measure temperature, air speed, angle of attack and other characteristics for cockpit display and critical to aircraft control. These products are used on general aviation airplanes, business jets, rotorcraft and other aircraft. Acquirer is owned by an investor group active in the aerospace sector having sold another company in the space and now redeploying the proceeds.
The Target makes complementary aircraft sensor products and has a strong position in flight test and development applications with the unique capabilities that this application requires. Target also brings specific products and customers that strengthen the Acquirer’s presence in the high profile and fast growing Unmanned Aerial Vehicle (UAV) segment.
Kinsella Group sourced the deal for the Acquirer and assisted in negotiating and closing the transaction.
When an east coast-based family office decided to grow its portfolio through focused acquisition, it retained Kinsella Group to execute a targeted acquisition search campaign. The client recently closed a transaction, just eight months after initial engagement of Kinsella Group.
The family office’s strategy is to serially acquire contract manufacturers of precision parts for the medical and aerospace industries. Kinsella Group quickly developed an initial universe of nearly 200 companies fitting the client’s criteria. From that universe, approximately 75 were selected as “best fit” targets and were discreetly contacted by Kinsella Group. Of the 75 prospects, 20 entered into confidentiality agreements or submitted detailed information for consideration by the client.
The resultant initial acquisition was the purchase of a majority stake in a $20 million revenues, $5 million ebitda company with two locations in the Southeastern U.S. The acquired business added sales and strong profitability to the family office's portfolio of businesses. Kinsella Group represented the client throughout the sale process including enterprise valuation, negotiation and due diligence which ultimately led to a successful transaction. Several additional potential acquisitions are in the pipeline which will ultimately enable the family office to achieve its planned growth objectives.
When a Northeastern-based Private Equity Firm wanted to acquire complementary businesses for a recently purchased portfolio company, it engaged Kinsella Group to generate non-auction deal flow through an Acquisition Search assignment. The Private Equity Firm recently closed a transaction — which increased revenues of the portfolio company by 50% — only ten months after initial engagement of Kinsella Group. At least one more closed transaction is anticipated from this effort.
Over that 10-month period, Kinsella Group identified and contacted over 125 strategic prospects, meeting very specific criteria, and entered into 16 confidentiality agreements under which significant operational and financial information were provided to the Private Equity Firm.
Assisting private equity firms in growing their portfolio companies through targeted Acquisition Search has long been a successful service of Kinsella Group. Its team of seasoned, former operating executives quickly develop strategies that create value for the client and allow meaningful conversations to occur with potential sellers. Many successful acquisitions have been completed in a wide range of industries including packaging, business services, distribution services, food equipment and metal manufacturing.
A diversified services company based in the Southeastern U.S. hired Kinsella Group to identify and acquire guarding companies for its security division. Kinsella Group’s initial screen, based on client criteria, narrowed an initial universe of more than 1,000 businesses into a list of approximately 80 prospects, who were contacted discreetly by Kinsella Group. Of the 80 prospects, 15 entered into confidentiality agreements or submitted detailed information for consideration by our client, resulting in the acquisition of three companies.
Kinsella Group coordinated data exchange, led negotiating sessions, and helped structure transactions to acquire the three companies.
A billion-dollar restaurant equipment distributor with operations in North America was seeking creative ways to expand its U.S. business. Kinsella Group was retained to conduct a targeted acquisition search campaign.
One of the Company’s areas of interest included point-of-purchase marketing companies, which the Company felt would compliment its business with quick-serve restaurants. Kinsella Group discreetly contacted the owner of a specialty marketing and graphics firm with a close relationship with the Company’s largest client. Despite the owner’s initial insistence that he was not thinking about selling his company, Kinsella Group was able to engage the owner in a dialogue concerning the client’s goals and plans. This discussion led to a site visit at which Kinsella Group structured a deal that met the approval of the client and the owner.
A fraternal organization with over 1 million members wanted to diversify its investment portfolio through acquisition of a company that could strengthen its significant fundraising and member-communication activities. Kinsella Group was engaged to assist in executing this new strategy.
Kinsella guided the client through the strategic process and executed a search for direct marketing/direct-mail/printing companies. Within 90 days of the commencement of the engagement, initial discussions were underway with four prospects. A $50-million company which closely met the strategic criteria was selected as the “best fit.” Kinsella Group represented the client in numerous aspects of the sales process, including enterprise valuation, negotiation, and due diligence, all of which ultimately led to a successful transaction. Total time from initial engagement to transaction close was under eight months.
Immediately following the transaction close, the client asked Kinsella Group to re-enter into discussions with another of the interested prospects and invited Robert Kinsella to join the Board of Directors of the acquired company.
When a Midwestern private equity firm updated its growth strategy to include the planned increase, in scale and reach, of an existing platform company, it turned to Kinsella Group to help it generate non-auction deal flow through an Acquisition Search assignment.
Beginning in early 2006, Kinsella Group quickly sourced a target group of 50 potential sellers, which was subsequently narrowed down to six “best-fit” prospects. Kinsella Group participated in active negotiations with all six prospects, and provided input into the valuation and structuring of the initial, successful transaction and two subsequent successful closings.
When a leading, 100-year old manufacturer and supplier of food- and non-food-related packaging solutions wanted to increase its presence and strengthen its management team in the thermoformed packaging space, it discovered that its internal efforts were not yielding the opportunities it desired. Recognizing Kinsella Group’s long history of acquisition-search success, highly developed search methodology, and firsthand experience in the packaging history, the company engaged Kinsella Group to source and identify potential sellers.
Kinsella Group quickly targeted two well-known, profitable thermoformers of stock and custom plastic packaging, and helped the client negotiate and close successful acquisitions with both prospects over the past year. The client has increased its regional presence to include facilities in Florida, Illinois, Kentucky, Michigan and New York, and has developed a competitive management team that will guide it well into the future.
A $65-million manufacturer of food-preparation and packaging products wanted to redeploy its assets from durable food preparation products to disposable packaging products, in order to take advantage of recent market trends and increase growth. Kinsella Group was engaged to help execute this new strategy through an acquisition. Kinsella Group identified 97 acquisition suspects which were further narrowed down to 39 active prospects. None of these companies were for sale prior to Kinsella Group’s contact. Within six months, the client had entered into discussions with three of these prospects and ultimately acquired a profitable competitor. Total time from initial engagement to transaction close was nine months.
A $65-million division of a $300-million privately held company had a specific goal: to identify and acquire companies whose customer bases and fields of expertise could work synergistically with the existing division to increase revenues by $25 million within two years. Kinsella Group quickly identified 87 acquisition suspects, nearly half of which developed into viable prospects with an interest in discussing a potential sale. Although none of the 42 prospect companies had expressed an interest in a sale prior to Kinsella Group’s contact, the client closed three acquisition transactions, one stock purchase and two asset purchases within the next 18 months. During that period, the division grew to $125 million and was subsequently sold for $142 million in cash.
On behalf of a $240-million NYSE-traded company, Kinsella Group developed and implemented an acquisition-search program to significantly grow the client’s revenue base within a two-year timeframe. Within nine months, Kinsella Group had identified 270 acquisition suspects, which were further narrowed to 23 viable prospects. None of these firms, representing $945 million in annual sales, were for sale prior to Kinsella Group’s contact; however, the client was able to acquire two of the companies, with total annual sales in excess of $163 million. The client subsequently increased its revenue base by 68% and doubled its stock price.
When a $150-million NYSE-traded company initiated a two-fold acquisition search program, it turned to Kinsella Group for assistance. The company had two goals: to expand an existing franchise through the acquisition of a west-coast competitor, and to pursue a potential major contributor to future growth. Within six months, Kinsella Group had narrowed its list of 286 acquisition suspects to 29 viable prospects, none of which were for sale prior to Kinsella Group’s contact. The client ultimately acquired two of these companies, fulfilling both of their program goals.