Company: Strahman Valves
Engagement: Owner Recapitalization
Headquarters: Bethlehem, PA
Type of Business: A leading valve manufacturer, producing wash down equipment and highly engineered industrial process valves
Investment Date: December, 2013
Strahman Valves was founded by the Strahman family in 1921. While still under the family’s control, no Strahman family members were active in the business. A number of family members were looking to achieve a fair price for their ownership interests while also finding a “good home” for the business and the “right” partner for the management team.
CID was introduced to Strahman through the Company’s investment banker. After a period of due diligence, CID purchased a majority of the Company’s equity while providing the opportunity for several family members and management to invest alongside us on the same terms and conditions. In doing so, family members that wanted liquidity achieved their goal, while those that wanted to remain invested were able to do so with an experienced investor in their corner.
To date, we have helped the Company develop a five year strategic roadmap and a proactive acquisition program. We also put in place a flexible capital structure to support the Company’s growth.
Cultural fit is often the most important success factor in a transaction that involves a change of control from family to institutional ownership. Strahman has a hardworking team that cares about customers, employees and the community. They wanted an equity partner that shared similar values. We are proud that Strahman chose CID Capital and are determined to maintain the culture of the Company and preserve the Strahman name for years to come.
*Readers should not assume that investments made in the future will be profitable or will equal the performance of the investment discussed in the case study. Upon request, the Firm will provide a list of all investments made by the Firm.
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