Ironwood Capital has made a subordinated debt and equity investment in ALCOM, a manufacturer of aluminium trailers, including cargo haulers, car haulers, snow trailers, flat/open carriers and horse/livestock trailers.
The company is headquartered in Winslow, Maine with additional manufacturing operations in Montana and South Dakota.
Ironwood Capital Managing Director Alex Levental says: “Over the next five years, the aluminum market is expected to grow at 7 per cent annually compared to 5 per cent for the steel alternative. Our investment thesis recognises that, in addition to market expansion and the company’s considerable backlog, ALCOM has substantial room to grow by adding new manufacturing sites. These new sites will allow organic growth, build geographic diversity, and broaden the product offering. Additionally, ALCOM has multiple avenues for value creation via new product development, increased penetration with existing dealers and operational improvement.”
“This is a terrific outcome for ALCOM, our customers and our employees. This investment group has the strategic vision, operational expertise and financial capacity to help us grow and expand beyond the success we have enjoyed so far,” says founder and CEO, Trapper Clark. “I am excited about the future of our company and optimistic about our ability to expand into new markets and introduce innovative products in the years to come.”
With the financial support of new partners, the company plans for significant investment in new manufacturing locations to increase its geographic coverage and market penetration. In addition, ALCOM plans to introduce new product designs to increase market share in the light industrial towing and outdoor recreational markets.
Source: Private Equity Wire
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