Gallamar Group

Selected Transaction Experience

With acquisition and operating experience dating back to1988, Gallamar has acquired companies across the industrial economy: wood, metal, plastic, and rubber manufacturing, food production, transportation, and distribution.

Many of these transactions involved complexity - corporate carve-outs, lender-led sale processes, and businesses performing well below their potential. They required disciplined diligence, transaction structuring, balance-sheet management, and hands-on operating involvement. That experience continues to inform how Gallamar evaluates and builds businesses today.

The firm’s current criteria focus on fundamentally sound businesses with capable management and room to grow — evaluated and operated with the rigor this record reflects.

Metal Products
CNC Machining
Plastics
Polymer Components
Wood Components
Cabinetry
Millwork Distribution
Food Manufacturing
Transportation

Manufacturing - Wood Products

Kitchen Cabinet Manufacturer

A manufacturer of custom kitchen and bath cabinetry, selling through a network of dealers throughout the United States.

Outcome Annual EBITDA: more than $2 million

Investment Situation

Following the 2008 recession, the company’s sales had declined by approximately one-third, producing cumulative losses of $6 million and a diminishing cash position.

Gallamar’s Role

Gallamar acquired a control equity position and went to work with management - implementing operational changes that reduced operating costs while improving product quality, and making the company easier for its dealer customers to order from and do business with.

Outcome The company now produces over $2 million in annual EBITDA on essentially the same revenue base on which it had previously sustained losses.

Manufacturing - Plastics

Plastic Injection Molding

A leading injection molder and coater of engineered plastic parts for the automotive, office furniture, and commercial lighting industries - a tier-one and tier-two supplier of high-quality components and modular assemblies.

Outcome First full-year EBITDA: $2.5 million

Investment Situation

Over 15 years of operations the company had accumulated losses exceeding $11 million, driven by unrecovered tooling and set-up costs, unprofitable customers and projects, and the absence of disciplined financial planning.

Gallamar’s Role

Gallamar acquired the operations and assets through a UCC Article 9 sale from the first secured lender - reducing total debt from $21 million to $6 million without bankruptcy. The firm evaluated customer profitability, reduced production costs, repriced where warranted, and added new non-automotive customers.

Outcome Operating income improved from a $1.4 million loss to a $1.5 million profit, with EBITDA of $2.5 million in the first full year. Automotive concentration was reduced from 95% to 60% of the business.

Manufacturing - Metal Products

CNC Machining Manufacturer

A 74-year-old CNC machining and aluminum parts manufacturer supplying OEM customers in the industrial and commercial markets throughout the United States.

Outcome EBITDA: – $1.2M → +$2.0M

Investment Situation

Losses tied to a large customer, combined with rising labor costs the company could not recover through pricing, led its senior lender to call the loan.

Gallamar’s Role

Gallamar purchased the operations and assets through a UCC Article 9 sale from the first secured lender, reducing total debt from $8.8 million to approximately $4.7 million.

Outcome EBITDA improved from negative $1.2 million at acquisition to positive $2.0 million in the second year - achieved while reducing company sales.

Manufacturing / Industrial Services

Transformer Remanufacturer

A remanufacturer of large industrial transformers serving public utilities and industrial customers throughout the United States and South America.

Outcome Cash flow substantially improved

Investment Situation

Sustained losses from unprofitable orders had strained the company’s finances, and its senior lender was seeking a resolution.

Gallamar’s Role

Gallamar purchased the operations and assets through a UCC Article 9 sale conducted by the bank, restructured the balance sheet - eliminating approximately $600,000 of unsecured debt - and implemented a cash-based business plan alongside operational changes.

Outcome Cash flow improved substantially, and the company delivered a better product, faster, to its utility and industrial customers.

Manufacturing - Polymer Components

Polymer Component Manufacturer

A tier-one manufacturer of polymer components for the automotive and commercial markets throughout the United States and Mexico.

Outcome First-year EBITDA: positive $869K

Investment Situation

A history of declining sales and negative EBITDA had led customers to begin resourcing their programs, and ownership had started to wind the business down.

Gallamar’s Role

Gallamar purchased the operations and assets, stabilized sales and profitability, and returned the company to top-line growth.

Outcome First-year EBITDA improved from negative to positive $869,000.

Manufacturing - Wood Products

Wood Component Manufacturer

A structural wood component manufacturer serving the residential, commercial, and agricultural building industries.

Outcome Debt: $900K → under $180K

Investment Situation

Cash flow constraints were preventing the company from purchasing raw materials to complete customer orders, and covenant defaults had led its bank to call the loan.

Gallamar’s Role

Gallamar purchased the operations and assets from the bank through a UCC Article 9 sale - reducing total debt from $900,000 to less than $180,000 without bankruptcy - and implemented operational changes across the business.

Outcome Cash flow and profitability turned from negative to positive.

Distribution - Building Products

Millwork Distributor

A value-added distributor of millwork products for the commercial and residential building industries.

Outcome Debt: ~$1.9M → under $700K

Investment Situation

The company was losing money monthly, and creditor actions were underway.

Gallamar’s Role

Gallamar acquired the assets and business through an Assignment for the Benefit of Creditors (ABC), completing an operational and balance-sheet restructuring that reduced debt from approximately $1.9 million to under $700,000. Operational changes included reducing expenses, improving product throughput, strengthening receivables collection, and exiting unprofitable customer relationships. The prior owner’s personal guarantees were resolved through the new company.

Outcome The company emerged with substantially lower debt, reduced expenses, and a healthier customer portfolio.

Manufacturing - Food Products

Private Label Food Manufacturer

A private-label pie manufacturer producing for several national-brand consumer food companies.

Outcome Returned to profitability; sales grew

Investment Situation

The loss of a large customer pushed the operation below break-even, creating cash flow pressure that led the company’s bank to call its loan.

Gallamar’s Role

Gallamar acquired the business and its assets through a UCC Article 9 sale, eliminating all trade and unsecured debt, and corrected the systems and operations that had constrained performance.

Outcome The company returned to profitability and grew its sales.

Transportation

Trucking Company

A carrier hauling specialized freight throughout the United States.

Outcome Sold to a strategic buyer within 10 months

Investment Situation

Losses in prior years had left the company with acute working-capital constraints.

Gallamar’s Role

Gallamar structured its participation through warrants and immediately factored the company’s accounts receivable to provide working capital - creating the time and stability to implement operational changes that returned the business to positive cash flow.

Outcome Within ten months, the company was sold to a strategic buyer in an all-cash transaction - repaying all of its debt and providing a cash distribution to its owners.

This is a selected record. Its common thread is not the circumstances of each transaction but what Gallamar brought to them: operating knowledge, transaction experience, and the discipline to build stronger companies.

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