NASHVILLE, Tenn.--TVV Capital, a Nashville-based private equity firm, announced today the sale of its portfolio company Indco, Inc., an Indiana-based manufacturer of industrial mixing equipment. The sale generated a 3.2x return on invested capital for TVV’s second fund, Tennessee Valley Ventures II, L.P. Indco was sold to a publicly-traded holding company, for which Indco will operate as a new business segment. Terms of the transaction were not disclosed.
“TVV acquired Indco in 2005, and its sale generated an outstanding return for investors in our second fund,” stated Andrew W. Byrd, President of TVV Capital. “When we purchased Indco, we saw potential for expanding their markets, accelerating product development and improving operating margins. The sale highlights our ability to identify and acquire well-managed, profitable companies in attractive niches and partner with their teams to achieve operational excellence, strong customer growth and market expansion.
“While we owned Indco, we helped its leadership team to revitalize its online presence to extend their market reach. We accelerated their product development initiatives to drive sales into new markets, including automotive and pharmaceuticals. We worked closely with their marketing team to perform a lifetime value analysis of customers, which resulted in better targeted sales and more catalog sales.
“As part of the sale process, we worked with the buyer to assure a smooth transition of operations. We are pleased that Indco’s key managers, including their President and Chief Financial Officer, will remain with the company post sale,” concluded Byrd.
About Indco, Inc.
Founded in 1975, Indco, Inc. is a leading designer, manufacturer and distributor of a broad range of industrial mixing and agitation equipment. Indco offers its customers a variety of pre-engineered handheld and portable mixing equipment, propellers, impellers, and dispersers, as well as related accessories such as containers, tanks, and stands. More information is available about Indco at indco.com.
Legal advisors for TVV Capital were McKenzie Laird PLLC of Nashville, TN. Hilliard Lyons Investment Banking (www.hlinvestmentbanking.com) was the sell side advisor to TVV.
About TVV Capital
TVV Capital (Nashville, TN) is an operationally-focused private equity investment firm that targets high-performing niche manufacturing companies in the lower middle-market. The firm seeks to accelerate portfolio growth and expansion through an operational value-added approach, utilizing senior manufacturing executives to forge close working partnerships with portfolio company leadership. TVV employs a direct-to-owner acquisition sourcing model that targets companies with enterprise values from $10 to $100 million, EBITDA margins of 10 to 25 percent and characterized by consistent profitability, strong management, and identifiable growth prospects. The firm is managed by an experienced team that has established a 20+ year track record of delivering best-in-class investment returns. For further information, please visit www.tvvcapital.com.