The company began as a distribution enterprise catering to the Boating Industry with a single product out of Italy. The France based entity has evolved into a world leading manufacturer of its own proprietary shaft seal product:
- U.S Operations - 56% of Gross Revenue, 63% Gross Margin Contribution
- European Operations - 49% of Gross Revenue, 62% Gross Margin Contribution
The company continues to distribute industry leading third-party products in protected territories (North America, Europe) that varies by product - being the World's number one supplier in several.
Financial Summary:
Combined Operations (TTM 9/30/22):
- Sales - $15,993,003
- Adjusted EBITDA - $3,630,906
The Company sells its products to a wide range of customer classes with no concentration. Direct-to-consumer represents approximately 27-30% of the volume and the balance to retail, boatyards, and stocking distributors. D2C is solid margin business.
One of the two operations' product range is so popular that large industry players must maintain them in stock. Examples of such clients include retailer customer West Marine with 200+ locations, and wholesale/distributor Land & Sea that has with 17 locations.
West Marine is pushing suppliers to have more products, so they have fewer suppliers (they do not like to deal with single line companies) and Fisherman’s Supply in Seattle is a great example of retailers seeking a one-stop shop experience.
As a company, it has been very conservative through the years, more tuned to always remaining profitable, sometime at the expense of growth. The owners are confident that a more aggressive strategy could significantly increase its reach in the next three to five years with the existing product line.
