The
Garden Industry Institutional Investment Program
Our
long-standing relationships with private equity investing institutions
have enabled us to establish our proprietary Institutional Investment
Program. The program’s main objective is to acquire leading grower/marketers
of woody ornamental plants in the horticulture industry, and also includes
other garden product companies in the fastest growing sectors of the
industry.
Ideal
acquisition candidates have the following primary criteria:
- They
operate in climates that are advantageous for producing certain products.
- Their
products are of consistently high quality and high volume, typically
for distribution in a multi-state or semi-national region.
- They
have proven capability to provide high frequency delivery service
to retailers and other commercial customers.
- They
are recognized in the industry for their product specialization, proprietary
product lines, and management strengths.
- They
are profitable entities with annual revenues of $10 to $50 million,
but may include larger or smaller entities with other attractive attributes.
Other
characteristics that are considered in each company evaluation include:
- Superior
profit margins and return on capital
- Soundly
based annual revenue and operating income growth rates
- Management
depth
- History
of new product introductions
- Efficient
operating facilities
- Adequacy
of water availability
This
program is supported by the institutional private equity firms who have
evaluated the industry and are seeking to provide equity funds for the
purchase of selected companies.
Depending
upon the size of each transaction, the equity to be invested will be
provided by one or all of the members of this group.
Disclosures
and Confidentiality
Candidate companies for financing and acquisition will be asked to provide
historical and projected financial statements, plans detailing future
strategies, and assessment of capital and other requirements supporting
the projected financials.
Considering
the critical nature and sensitivity of such transactions, Spring Garden
moves expeditiously, striving for an early decision on values and an
offer to enable shareholders or management to make their decisions on
whether to proceed.
Complete
confidentiality is assured in all relationships and transactions under
consideration. Spring Garden protects all proprietary information, plans,
and secret processes by executing a strict Confidentiality Agreement
with each client.
next