Business Description:

Flow Dry Technology, LLC currently owns the majority of the stock in Flow Dry Technology, Inc.

Flow Dry designs, develops and manufactures products for sealing, drying and protecting industrial products made by its customers. The company has $15 million in sales through two product lines – desiccant packaging and gasket manufacturing. Flow Dry has significant market share in the automotive desiccant market both in the United States and in Europe.

Transaction Background:
Flow Dry was sold by Brittany Corporation, a metal stamping company. Brittany was facing some financial pressure in its core business and elected to sell this non-core division to raise cash. They underwent an unsuccessful auction of the company due to the small size of Flow Dry, its customer concentration and its heavy exposure to the automotive industry.

Investment Thesis:

Flow Dry has been profitable historically and has grown significantly in recent years, mostly due to its European operation. The company has strong existing management in place, potential for growth in non-automotive markets and expansion opportunities for its European automotive operations. As a result we believe the company is very well positioned to grow revenues and expand its margins. We were able to purchase the company at a very attractive price due to the pressure to sell the business and the current state of the automotive industry. Flow Dry was sold by Brittany Corporation, a metal stamping company. Brittany was facing some financial pressure in its core business and elected to sell this non-core division to raise cash. They underwent an unsuccessful auction of the company due to the small size of Flow Dry, its customer concentration and its heavy exposure to the automotive industry.