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We've got too many balls in the air to both adhere to our
strict one page limit and have the usual breezy introduction,
so without further ado ...
In August of 2003 we hired a new Office Manager, Andrea Kasper.
She will lose her status as the most recent hire in March
when we will be joined by Frederick Antwi — our newest Analyst.
Previously, Frederick worked at Gap, McKinsey & Company and
Morgan Stanley, and is a graduate of Harvard College.
In January we completed an $8.2 million investment in Cable-Tech
Industries, LLC. Headquartered in Lenexa, KS, Cable-Tech is
a manufacturer of complex sub-assembly, final assembly and
turnkey electro-mechanical products on an outsourced basis
with end use applications in the railroad, air traffic management
and other industries. The company has grown rapidly over the
last several years and sought outside capital to support further
growth and provide partial liquidity to shareholders. Already,
we are working with management on a number of growth initiatives,
including potential acquisitions.
Let it snow, let it snow, let it snow. Well, it has, and Spyder
is having its usual fantastic winter. Sales this season will
be up around 40% over last season as the company continues
to expand its product line. For the 2003/2004 season the company
introduced a sub-brand (Stryke) to compete against lower priced
"Spyder knock-off" competitors and the company has
launched a new snowboard collection for 2004/2005 under the
brand names of Section and Legion.
Alternative Technology posted a record year in 2003, growing
sales nearly 15% despite still sluggish IT spending throughout
much of 2003. Volume in the last several months has picked
up considerably and management is excited about being on the
"right" side of the IT spending curve in 2004.
Last year was all about growth at HiRel Systems (previously Schott
High-Reliability). In February, the company purchased a semiconductor
equipment product line from Schott Corporation. In August,
HiRel acquired DT Magnetics, formerly a division of Dover
Corporation. The acquisition of DT substantially broadened
HiRel’s customer base and industries served, and increased
its engineering and sales capabilities. HiRel’s sales nearly
doubled in 2003 and the company enjoyed record profitability
while de-levering the business.
We are currently in the market raising CHB Capital Partners
III with a target of $100 million. We expect a first close
including many existing investors along with a few new institutional
investors by the end of the first quarter.
We encourage you to call us with interesting investment opportunities
within the closely held and family owned business market.
We look for transactions where we can invest equity capital
in established companies with $15 million or more in revenue.
Should you call, we guarantee you a thoughtful and timely
response.
Tad Kelly, John Flanigan, Blake Morris, Grant Clayton, Sean
McClenaghan, Kyle McNeal & Andrea Kasper
511
Sixteenth Street, Suite 600 Denver, CO 80202
Telephone: (303) 571-0100 Facsimile: (303) 571-0114
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