Amerinac Holding Corp. (fka PAOS)

[EthanolTurbo]

PAOS acquired another company in 2012 for $7.1 mill.

Here's the details from the 10Q:

On May 25, 2012, the Company acquired the assets of Fastener Distribution and Marketing Company, Inc., which included Aero-Missile and Creative Assembly (collectively the “FDMC Acquisition”) with a fair value of $8.8 million (pre-tax) for approximately $7.1 million. The Company paid for the acquisition and repaid the existing outstanding credit facility of approximately $1.575 million with a new credit facility consisting of a $2.5 million term loan and a $10 million revolving loan with Newstar Business Credit, LLC (the “NewStar Loans”). The operating results of the FDMC Acquisition businesses are included in the financial results from the date of acquisition. The FDMC Acquisition Businesses are significantly increasing the Company’s revenue with related impacts on the cost of revenue and other items in the Company’s results of operations for the year, compared to prior periods. The Company has substantially completed the integration of the FDMC Acquisition business. The Company is seeking to refinance the NewStar Loans and requires the additional flexibility which would be provided by the refinancing to achieve its anticipated growth.



The acquisition provides the Company numerous benefits, including expanded breadth of product offerings and markets served, coast to coast physical presence, substantially increased depth of management and sales capability and marks a significant event in the Company’s development.



The Company is a niche player in the North American fastener industry. The fastener distribution industry is highly fragmented with no single company holding a dominant position. The Company competes with numerous distributors who serve as authorized stocking distributors for the fastener manufacturers in the Company’s supplier base.



The Company’s Tiger-Tight product is a unique lock washer product that is seeking to gain market acceptance. It has extraordinary holding properties, is reusable and does not destroy the material which it is holding in place. In the coming year, the Company anticipates widespread distribution of Tiger-Tight lock washers under an exclusive distribution agreement providing the Company master distribution rights of the product in North America. The washers, which the Company believes are superior to any competitive product, are now readily available and manufactured in the USA. While the Company carries a full line of washers, special orders can be accommodated.



The Company’s subsidiary, Aero Missile, has been named the Master Distributor by SPS Technologies in Jenkintown, Pennsylvania for its FLEXLOC® Locknut product line toward the end of last year; the Company’s initial sales of this mature product high market acceptance were slowed due to certain pricing changes which took place as the company started its distribution. The Company is now achieving growing revenues from sales of the FLEXLOC® line which it anticipates will continue as the year progresses.

So these guys already make bank off the parts they sell, but now they're expanding into the fragmented fastener market. That means even more money.

These guys might make $50-70+ mill in 2014 alone.