SOURCE: TVV Capital

TVV Capital

October 18, 2012 12:13 ET

TVV Capital Acquires Big 3 Precision Products, Inc.

Investment Aligns Squarely With TVV's Focused Investment Approach and Value-Creation Strategy

NASHVILLE, TN--(Marketwire - Oct 18, 2012) - TVV Capital ("TVV Capital" or "TVV"), an established, value-oriented, lower middle-market buyout firm focused on niche manufacturing, today announced that it successfully completed the acquisition of Big 3 Precision Products, Inc. ("Big 3") effective September 28, 2012. Big 3 is a market-leading niche manufacturer of injection blow molds, tooling and fabrication products. Terms of the transaction were not disclosed.

Founded in 1970 and headquartered in Centralia, IL, Big 3 is a profitable manufacturer with a diversified revenue stream and top-tier customer base. The company's two fast-growing lines of business include precision injection blow molds and tooling and metal fabrication products.

Customers for Big 3's precision injection blow molds include major players in the pharmaceutical and personal care products markets including GlaxoSmithKline, Bristol-Myers Squibb, and Procter & Gamble. Leaders in the automotive industry including Ford, General Motors, Chrysler and Mercedes benefit from the company's tooling and metal fabrication products. The company's growth is attributable to long-standing relationships with marquee global customers and a quality reputation for highly engineered product lines in each of its business units.

Alan Scheidt, Big 3's President and CEO commented, "We were looking for a trusted partner with the shared vision and strong operations experience required to take full advantage of market expansion and globalization opportunities. The TVV team represents a collaborative and supportive partner with deep knowledge and experience in building a strong labor force and globalizing product lines to support Big 3's next phase of growth." 

Andrew W. Byrd, TVV Capital's President commented, "We look forward to partnering with Big 3's talented, multi-generational leadership team whose deep industry knowledge and experience have successfully built market-leading positions in two stable and growing businesses." He added, "The Big 3 transaction represents a classic case study of TVV's value-oriented approach and value creation strategy. The investment was sourced through TVV's proprietary origination database and direct calling efforts and purchased directly from the owners. Our operationally-focused team is uniquely equipped to work with Big 3 management to build the operating scale needed to accelerate Big 3's growth and profitability over the coming years."

Advisors
Legal advisors for TVV Capital were Bass, Berry & Sims PLC of Nashville, TN; Big 3 was advised by Lathrop & Gage LLP of Kansas City, MO.

About Big 3 Precision Products, Inc.
Founded in 1970 and headquartered in Centralia, IL, Big 3 Precision Products ("Big 3") is a market leader in the manufacturing of precision injection blow molds, tooling and metal fabrication products. The company has two manufacturing locations in Centralia, IL, and Millville, NJ, and two sales and engineering offices in Kansas City, MO, and Holliston, MA. Big 3 operates two lines of business: 1) precision injection blow molds that serve the giants of the pharmaceutical and personal care products industry including GlaxoSmithKline, Bristol-Myers Squibb, Procter & Gamble and 2) tooling and metal fabrication products that serve the leaders in the automotive industry, including Ford, General Motors, Chrysler and Mercedes. For further information, please visit www.big3precision.com.

About TVV Capital
Founded in 1997 and headquartered in the Southeast market, TVV Capital is an established, value-oriented, lower middle-market buyout firm focused on acquiring market-leading niche manufacturers in defensive, recession-resistant sectors with strong succession management in-place and identifiable growth prospects. TVV targets companies with enterprise values from $10 to $100 million, EBITDA margins of 10 to 25 percent and are characterized by positive and stable cash flows, consistent profitability and leverageable assets. TVV fully utilizes its extensive proprietary origination database and direct selling efforts to acquire companies at attractive purchase multiples. The firm applies its operating team value creation advantage to accelerate portfolio growth and expansion. TVV is managed by an experienced, stable and successful investment team that collectively represents over 100 years of Southeast market experience, 70 years of private equity and investment banking experience, and 21 years of operating experience to support its value-creation orientation and strategy. For further information, please visit www.tvvcapital.com.

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