PARTNERSHIPS IN FLUID HANDLING EQUIPMENT FOR THE MUNICIPAL, INDUSTRIAL, COMMERCIAL, AND AGRICULTURAL MARKETS
ABOUT
Great River Pump Works (the "Company") is a holding company focused on making partnership investments into distributors and service providers of fluid handling equipment offering engineering support, new sales, repair, replacement, field service, as well as controls and automation for the municipal, industrial, commercial, and agricultural markets
The Company was organized to capitalize on strong market fundamentals; a growing focus on upgrading the aging water and wastewater infrastructure, an aging workforce within process facilities (including water and wastewater)/ lack of technical expertise, long term growth in process industries driven by inexpensive natural gas, a rapid pace of innovation and operator challenges balancing equipment purchases and operating costs
Great River Pump Works is part of The Great River Company, Inc. (“GRC”) family of businesses, a Minneapolis-based private investment company backed by business owning families for family and founder owned businesses seeking liquidity for ownership transitions, career and financial opportunities for management teams, and experience and capital for organic and acquisitive growth
GRC is unique for business owners because we have no time horizon with our investments, and consider holding them forever. GRC offers a permanent family capital solution for business owners.
For more information on GRC please see its website at www.tgrco.net
KEY INITIATIVES
Overview
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Partner with likeminded owner(s) and management teams at leading distribution and service and maintenance businesses
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Allow existing management teams to maintain operational independence and preserve company culture while leveraging the scale and best practices of a larger company
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Add additional companies to platform with preference for companies serving new geographies, customers, end markets, product expertise, and distributed brands
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Leverage existing relationships to expand service offering, geographic presence, and wallet share with customers
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Opportunistically hire professionals to offer new services or expand existing services into new end markets, new geographies or new customers
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Form a diverse value-added distributor and service provider of fluid handling equipment offering engineering support, new sales, repair, replacement, field service, as well as controls and automation with >$15MM in consolidated EBITDA
An Opportunity to Utilize a New Model
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The current value chain requires customers to work with multiple distributors and service providers for “Big C” capital and “little c” capital/maintenance projects
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Great River Pump Works seeks to become a single-source value-added distributor offering new equipment sales, field service and shop repair services, controls and monitoring
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By offering installation, engineering and design, assembly and technical product knowledge, Great River Pump Works will continue to get closer to the customer
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Great River Pump Works will take a multi-pronged approach to the end customer:
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Assist consultant engineers with technical knowledge of equipment and application
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Provide contractors with the highest level of customer service and a single source solution
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Seek to get closer to the end-customer through services such as energy audits to identify costly old equipment and on-site training to gain in-person interaction with the customer’s staff
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WHY WE LIKE THE SPACE
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Attractive Business Model:
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Non-discretionary, essential services to our nation's mission critical facilities and infrastructure assets decreases prolonged cyclicality risk
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Trend toward increased outsourcing of services driven by both 1) an aging workforce and 2) need for costs savings by asset owners
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Serves large and diverse industrial end-markets that make value decisions and do not rely entirely on cost
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Steady, recurring need for replacement products within harsh industrial environments; products are exposed to high pressure, hot temp and nasty environments
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Diverse revenue streams including equipment sales, maintenance, repair, field services, and controls and automation work
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Ability to add application engineering/technical sales to create demand for products and services
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Ability to augment products with advanced technology such as remote control and monitoring technologies improves efficiency and reduces costs
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Favorable Tailwinds
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Growing focus from federal, state, and municipal agencies on upgrading aging water, wastewater, and sewer systems
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Aging workforce inside water and wastewater facilities creating shortages of skilled labor in maintenance departments
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Long term growth in process industries driven by inexpensive natural gas
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OEMs regularly developing new technologies associated with eliminating waste (e.g., reusable/grey water for industrial applications), reducing cost and increasing safety, which provide for new revenue opportunities for service providers
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Asset operator challenges balancing costs including purchases and operating costs, causing them to look for unique solutions such as equipment rental
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Primed for Consolidation
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Highly fragmented market with few super regional competitors
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Wide variety of investment opportunities (end market, brands, and value-added services) support consolidation amongst distributors and service providers
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Opportunity to diversify into new end markets, customers, and significant operational benefits to scale
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Geographic and market diversification, as well as value-added services, such as controls and automation is desired, but challenging to tackle organically
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Ability to leverage local knowledge of both end markets and customers across a broad footprint (i.e., knowledge is more valuable in an alliance of companies than it is on its own)
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BENEFITS OF JOINING
Benefits of Joining Great River Pump Works
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Offers owners chance for liquidity
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Retain day-to-day operational control and preserve company culture and legacy
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Preservation of brand name and identity
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Increasing responsibility and compensation opportunities for key members of team
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Seat on board of directors and voice for management team to influence direction of the organization
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We understand the importance of customer relationships, being local and nuances that exist in each market and geography
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No intention to implement “one size fits all” operational plans or policies
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Great River Pump Works will look to take a pragmatic approach and will encourage economies of scale where applicable (e.g., human resources, accounting / finance, group purchasing, safety management, etc.)
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Leverage operating scale, best practices and combined service offerings of a larger, diversified, and stable company for all stakeholders, while preserving the unique culture of each sister company
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Partner with a long-term, permanent capital investment company with experience and resources to facilitate growth
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Opportunity and ability to grow retained investment with a larger business
CRITERIA
Investment Criteria
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What we are looking for in a partner at Great River Pump Works
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Distributive Products
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Pumps
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Valves
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Motors
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Blowers
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Fans
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Motor controls
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Chemicals
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Services
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Engineering support
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New sales
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Repair/replacement
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Field service
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Controls and automation
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End Markets
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Municipal
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Industrial
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Commercial
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Agricultural
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Operating executives or management teams with growth ambition
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Additional evaluation factors
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Healthy culture
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Owner(s) willing to roll equity
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Stable historical revenue
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Strong brand and reputation
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Emphasis on safety
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ABOUT GRC
GRC Overview: Permanent Family Capital
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The Great River Company (“GRC”) is a long-term focused, private investment company purposefully built in collaboration with our private individual investors, many of whom have built and managed personal and family-owned businesses
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GRC seeks investment opportunities in founder and family owned businesses seeking liquidity, where the owners are seeking
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Ownership transitions
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Greater career and financial opportunities for their management teams, and/or
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Capital for organic and acquisitive growth.
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Our unique model allows companies in which we invest to achieve their full potential through:
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Long-term ownership; potentially indefinite
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Implementation and execution on real organic and acquisitive growth strategies
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Development of enduring solutions versus short-term fixes
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Further together – building great companies for the next generation
What GRC Brings to the Partnership
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The GRC team has direct experience investing in environmental consulting and related businesses, as well as has been owned or advised over 50 companies in their respective careers
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Experience partnering with business owners desiring to transition away from day-to-day operations
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Extensive experience working with founder/entrepreneurs and management teams to develop and execute on growth initiatives, both organic and acquisitive
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Experience working with managers stepping up into new roles as part of succession plans (e.g., general managers becoming CEOs, controllers becoming CFOs, etc.)
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Believer that we can achieve more together, and that preservation of legacy and culture of the business is critical to our collective success
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Focus on an outcome where all stakeholders benefit: shareholders, employees and their families, the community where the business resides, the customers the Company serves, and the vendors that provide services/products to the enterprise
For more information on The Great River Company, please visit our website at www.tgrco.net
CONTACT
Inquiries
For any inquiries, questions or referrals, please call:
Michael O'Neill
651-283-4152
or fill out the following form