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Hunt Valve Case Study

Hunt Valve

Hunt Valve Case Study

Hunt Valve

Hunt Valve Case Study

Hunt Valve

Hunt Valve Case Study

Hunt Valve

Hunt Valve

Overview

Hunt Valve is a case where May River leveraged its core expertise and Executive Resource Group (ERG) to add immediate value.

Hunt Valve is a long-standing manufacturer of mission critical valves and actuators used in the Navy’s highest-priority submarines, aircraft carriers, surface combatant vessels, and other platforms.  The company has a location in Virginia that manufactures proprietary electro-mechanical actuators, as well as locations in Montreal and Ohio that manufacture valves for the prime shipbuilders and the U.S. and Canadian Navies.

At the time of the acquisition in late 2015, the U.S. Navy was preparing for what is still expected to be nearly a two-decade-long ramp up in new submarine production.  These new submarines would replace the aging Cold War-era fleet that will be forced into decommissioning over the coming years.  As one of only a handful of qualified providers of critical valves to the submarine and aircraft carrier programs, Hunt stood to benefit significantly from the upcoming new ship procurement cycle.

Deal + Operating Thesis

The U.S. Navy’s supply chain is fragmented and comprised of many small, founder/family/entrepreneur-owned companies, a fact the Navy has publicly voiced concerns about as it pertains to the supply chain’s ability to keep pace with the upcoming build cycle.  The Navy’s significant future demand and supply-chain concerns placed Hunt in an excellent position to execute a buy and build strategy oriented around acquiring smaller, less well-capitalized suppliers.

Executive Resource Group (ERG) member Brad Sterner has been the CEO of Hunt Valve since the initial acquisition.  Brad has over two decades of experience in the flow control sector with several well-respected, publicly-traded industrial companies and has led Hunt through three successful acquisitions, more than tripling Hunt’s revenue since 2015.

Partnership + Results

SIGNIFICANTLY TOP-GRADED LEADERSHIP

May River introduced Brad Sterner as CEO at closing of the initial transaction, and subsequently added a new President and CFO as the company scaled through acquisition.  Leadership was also bolstered with a new VP of Engineering and VP of Operations & Supply Chain.

NAVY SUPPLY CHAIN CONSOLIDATION

Hunt Valve is an established, go-to U.S. Navy supply chain partner.  The acquisition and integration of three companies:  Precision Technologies; Montreal Bronze; and Pima Valve has significantly improved Hunt Valve’s product breadth, diversification of critical Navy programs, and after-market revenue from new ship builds.

DRAMATICALLY SCALED PLATFORM

Within five years, Hunt has more than tripled revenue and EBITDA by improving business systems, financial controls, supply chain management, and its go-to-market strategy.  Hunt has also top-graded the senior leadership team and has added breadth and depth to its products and Navy programs served.