Pitonyak Machinery Corporation (PMC) is a branded manufacturer of agricultural implements, including grain carts, Hipper Rollers®, Hipper Choppers®, land levelers, field rollers and quick hitches, each designed and manufactured to be the heaviest, most durable equipment of its kind. The company also manufactures a variety of construction equipment and accessories, including loader forks, box scrapers and utility levelers for landscaping and lot maintenance. PMC’s products are available via its dealer network. PMC was founded in 1913 and is based in Carlisle, AR (c).
Bigham Brothers manufactures agricultural tillage and cultivating equipment for the sustainable agricultural market. The company’s products are marketed through the Bigham and Lilliston brands and available via a network of approximately 1,400 independent dealers and co-operatives. The company was founded in 1933 and is based in Lubbock, TX (www.bighamag.com).
A benefit of the add-on acquisition includes giving Bigham access to an additional, centrally located manufacturing facility. Together, the two Bigham factories will be able to supply a nationwide network of dealers, servicing the major agricultural regions of the United States. All products, which are designed for commercial farm operators, will be marketed under the Bigham brand. PMC’s products, such as its Hipper Chopper and GCX Grain Carts, which have historically been sold primarily in the Mid-South region, are complementary and counter-seasonal to Bigham’s existing product lines.
“The acquisition of PMC is a reflection of TVV’s continued expertise in directly sourcing and closing deals in the niche manufacturing industry,” said Andrew Byrd, President of TVV Capital. “In the particular case of PMC, it highlights our ability to scout deals that also aid in the rapid expansion of an existing portfolio company. Bigham is currently benefiting from growth that’s driven by superior products and the implementation of lean manufacturing practices. When combined with favorable market conditions, such as expanding farm incomes and increasing crop demand, the addition of PMC fully supports Bigham’s growth-through-acquisition strategy.”
TVV Capital is a 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 million to $100 million, EBITDA margins of 10 to 25 percent, and which are characterized by positive and stable cash flows, consistent profitability, and leverageable assets. TVV Capital was founded in 1997 and is headquartered in Nashville (www.tvvcapital.com).
Legal advisors on this transaction for TVV Capital were Bass, Berry & Sims of Nashville and accounting services were provided by DGLF CPAs and Business Advisors of Nashville.
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-26-13