December 2018 – Calder Capital, LLC, a mergers & acquisitions firm focused on lower middle market industrial and service transactions, is pleased to announce the successful acquisition of Grand Rapids, MI-based Performance Die Cutting & Finishing, LLC.
Established in 1987, Performance Die Cutting specializes in die cutting of sheets, cardboard, foam, cloth, and other materials for a growing base of West Michigan-based customers primarily in the printing and packaging industries.
Performance was acquired by Steven Weber of Grand Rapids. Mr. Weber was very excited about the opportunity to purchase and grow Performance Die Cutting. “I’m very much looking forward to taking the reins and growing the business,” stated Mr. Weber. “There are a lot of opportunities to market the business to additional customers as well as add services. The owners of Performance have done a wonderful job of building a company that focuses on customer service and quality and I feel blessed to be the one that will take it to the next level while maintaining their core values.”
Performance Die Cutting had been owned by three partners since they initially acquired the business in 2007. Co-owner Carl Pease had served as the primary operator of the company since the acquisition. Mr. Pease was equally excited about the sale. “We were very pleased to sell the company to Steve. He is smart and ambitious, and we feel very confident that he is the best fit to grow the business while taking care of the existing customers. I agree that there are a lot of opportunities to grow the business and make it stronger and better, but for me, it was time to retire.”
Max Friar, Managing Partner of Calder Capital, noted that the acquisition went very smoothly and he was pleased with the professionalism of all parties involved. “From start to finish the sales process took about 6 months,” stated Friar. “That is well below the current average of over 9 months. All sides, including the various advisors, remained calm and level-headed regarding valuation, financing and legal. Selling/buying a business is never easy and it’s a pleasure to have worked with a great team.”
Regarding the state of the M&A market, Friar commented that there appear to be a number of factors in play that are tilting the scales towards buyers. “Interest rate increases, stock market turbulence and the continuing and growing desire of the boomers to retire are beginning to work together to put downward pressure on valuation. It’s basic economics: money is more expensive and there is more supply coming to market. The result is that buyers are generally becoming choosier and lenders are constraining their ability to pay multiples that we’ve seen in past years. This is not to say the sky is falling. By no means is it a bad time to sell. The economy remains strong and most economists are projecting continued growth through 2019.”
The Performance Die Cutting sale marked the 11th closing for Calder Capital in 2019. “Combined with Small Business Deal Advisors, we’ve hit a record 15 closings for the year,” noted Friar. “I feel that 2019 will also be a strong year.”
“Thank you to Ghazey Aleck and the Calder Team. We are pleased with the number of qualified buyers you presented to us and we are extremely happy to say that we got the deal done with the best buyer for the future of our business. Thank you very much! Highly recommended.” – Carl Pease (Seller)