Investment Criteria

We seek investments in companies that meet the following investment criteria:

Industry Segments:

• MANUFACTURING: niche manufacturing companies that make customized products with short order and production lead times and generate gross margins in excess of 25%.
• DISTRIBUTION: companies with value-added branding, merchandising or unique processing with gross margins in excess of 20%.
• BUSINESS SERVICES: Select service providers with a unique and value-added service offering, deep customer relationships, high switching costs and a scalable business platform.

Transaction Values: $15 to $100 million

Revenues: $20 to $150 million

EBITDA: $3 to $12 million for platform companies. No minimum EBITDA for add-on acquisitions.

Geographic Preference: All platform companies must be headquartered in the United States. No geographic preference for add-on acquisitions.

Transaction Types:

• Private companies undergoing an ownership transition, recapitalization or requiring growth capital
• Corporate divestitures
• Strategic add-on acquisitions for platform companies
• Select financial restructurings or turnarounds - www.sangamonindustries.com

Control: Required (alone or with a compatible co-investor)

We do not directly invest in real estate: natural resource companies; highly regulated businesses such as banks, insurance companies and utilities, retail businesses; restaurant chains; early stage companies; or technology, telecommunications and internet companies.