Four Key Reasons Why the HBM and Aerofil Technology Partnership Is a Perfect Match

HBM’s business development hard work has paid off in the third quarter of 2017.  The second acquisition in just 60 days, the Aerofil Technologies acquisition is a testament to our desire to aggressively build our portfolio and deploy capital in acquiring specialty manufacturers in sectors such as transportation, industrial equipment, energy, chemicals, and minerals.

Bob Dunaway, Chairman and CEO of Aerofil Technology, commented, “From our earliest conversations, HBM sought to understand our business and the value we bring to customers. We are thrilled to have found a partner—and neighbor in the St. Louis area—that shares our focus on lean manufacturing excellence and will support our next chapter of growth.”

We see four key takeaways that underscore why this partnership between HBM and Aerofil Technology was a perfect match:

  • A key component of Aerofil Technology’s growth and customer retention strategy is the ability to apply world-class lean manufacturing practices and techniques. Applying tech-enabled customer relationship management, they continuously monitor demand and end-user consumption on behalf of their customers.  Producing exactly what is needed at the exact right time, customers see enormous value working with Aerofil Technology as a result of reduced inventory, shortened lead times and, therefore, substantial cost savings.
  • We are planning sizable capital investments to expand the company, both organically and through acquisitions. Aerofil Technology, like our other portfolio companies, will benefit from our enterprise-wide solutions such as talent development, strategic planning, technology deployment and overall support.
  • Aerofil Technology fits squarely within HBM’s investment parameters in control acquisitions of specialty manufacturers with a focus on chemicals as well as transportation, industrial equipment, energy, and minerals. Further information about our investment criteria is always available.  We seek companies with long-term growth potential driven by unique end market fundamentals or specific, actionable opportunities, along with sustained competitive advantage driven by a proprietary product or differentiated business model.
  • The Aerofil Technology relationship was developed over a long period of time through mutual business relationships. It was clear that the leadership team highly valued HBM’s long-term patient capital strategy, and specifically chose not to enter into an auction process. The core of our strategy is that we acquire companies to add them to our portfolio indefinitely, not with the intention of reselling them. Our companies become part of the HBM family and are built and nurtured for their long-term success.

Click here to access Aerofil Technology’s website and learn more about HBM’s new portfolio company.