REFRIGERATION, COOLING AND HEATING EQUIPMENT

Hypotenuse Enterprises, Inc. continues to assist its client companies to execute their growth programs through acquisitions, licensing, strategic alliances and joint ventures. We are currently conducting a search for acquisition candidates in the equipment segment of refrigeration, cooling, and heating or related food processing equipment. A complete acquisition criteria sheet follows.

If you are aware of opportunities in any of these market segments, please contact us at Hypotenuse®. We would be very pleased to discuss the specific situation with you.

Our client has the capacity to execute a transaction up to $70 million. The company provides capital equipment to a wide variety of markets including ice for human consumption, industrial ice making and chilling, and other industries requiring refrigeration and cooling. They can bring synergies from their own manufacturing operations, and seek synergies through additional branded products, and through a complementary sales force and distribution capability.

ACQUISITION SEARCH CRITERIA: Refrigeration, Cooling and Heating Equipment

 ACQUIRER

Acquirer is a U.S.-based capital equipment manufacturer specializing in refrigeration, cooling and ice making applications, serving a variety of commercial and industrial markets, from food manufacturing to ice for human consumption. Acquirer is seeking several acquisitions to reach additional market segments through acquired sales and marketing channels, and/or to provide additional branded or proprietary products and/or leverage manufacturing capabilities. Company has the capacity to execute a transaction up to $70 million and is interested in businesses with sales of $1 to 100 million.

TRANSACTION CRITERIA

Target acquisition candidates are likely leaders in their current markets, or have strong niche positions. Candidates may market food processing equipment, cooling coils, heat exchangers, chillers, condensers, evaporators, flakers, slurry ice equipment, ice bagging or packaging equipment. Of additional interest are target companies which supply equipment related to refrigeration, cooling or heating applications. Candidate may be a spin off of a larger company, an orphan division of a company without strategic fit, or a private company seeking ownership transition.

One or more of the following is particularly desirable: branded products, strong direct sales force, market leadership in a segment or niche. In general, equipment that sells for $5,000-$300,000 per unit with some engineering content will fit well. A manufacturing facility is not necessary as the acquirer can bring manufacturing synergies. A strong service, parts and repair business is also desirable.

Acquisition candidates may be in the U.S., Canada or other key industrial countries.

SUBMITTING CANDIDATE OPPORTUNITIES

To discuss criteria further, or to submit a candidate for consideration, please contact:

Diane C. Harris, President
Hypotenuse Enterprises, Inc.
1545 East Avenue
Rochester, N.Y. 14610 USA
E-mail: info@hypot.com
Voice: 585-473-7799
Fax: 585-473-7465