- To acquire established manufacturing companies with strong predictable cash flow.
- To provide our shareholders with stable and growing monthly dividends.
We look for opportunities to acquire private companies that fit the following criteria:
- An established operating history.
- Competitive advantage.
- Growth potential.
- Operations based in North America.
- No early stage, cyclical, technology or hospitality.
Our buy/build/hold approach includes the following:
- Long term ownership – we do not buy a company with the intention of selling it.
- Investment of time, money and expertise into the business.
- Partner with existing management to grow the business.
- Autonomy for management – we prefer to not be involved in the day to day operations.
- Vendors and key management have an equity interest.
- Opportunity for employees to participate in equity ownership (ESPP).
- Disciplined purchase price based on a multiple of sustainable EBITDA.
- Comprehensive due diligence to satisfy our criteria for a successful investment.
Once a company is acquired, we look to build a strong partnership in the following ways:
- Strategic planning;
- Access to resources and talent;
- Assist with major capital allocation decisions;
- Invest in growth opportunities; and
- Oversight through financial reports and business plans.
- Exit opportunity.
- Business legacy continues.
- Management remains in control of the day to day operations.
- Access to advisory group with significant operational, marketing, financing, legal and international experience.
- Opportunity to cash out and participate in Decisive growth.
- Business as usual.
- Stability of long term ownership.
- Opportunity for equity ownership (Employee Share Purchase Plan).
- Capital to grow the business.
- Growing diversified portfolio of companies.
- Stable and growing monthly dividends.
- Sustainable payout ratio.
- Capital gains opportunity.
- Acquisition of Northside Industries – August 2019
- Completed public offering of common shares ($14.9 million) – July 2018
- Acquisition of Hawk Machine Works Ltd. – June 2018
- Acquisition of Slimline Manufacturing Ltd. – May 2018
- Increased monthly dividend by 20% to $0.03 per month ($0.36 annualized) – March 2017
- Acquisition of Unicast Inc. – June 2016
- Completed equity offering of common shares ($5 million) – June 2016
- Acquisition of Blaze King – February 2015.
- Completed equity offering of common shares ($2 million) – February 2015
- Initial dividend of $0.02 per month ($0.24 annualized) – June 2015
- Increased monthly dividend by 25% to $0.025 per month ($0.30 annualized) – October 2015
- Completed initial public offering of common shares ($1.5 million) – September 2013
- Shares commence trading on the TSX Venture Exchange – September 2013