Excelis Core Stats
Acquisitions: 5 add-ons
Expansion Timeline: 24 months
Scope of Services: Filling, capping, labeling, end-of-line automation, aftermarket parts and service
Financial Impact: Expanded TAM, stabilized cash flows, positioned for multiple expansion from ~6x to potentially 8–10x EBITDA
Origin Story
LFM Capital, a Nashville-based PE firm, targets lower middle market manufacturing and industrial services where operational improvements and disciplined M&A drive scale and valuation lift.
In December 2021, it acquired SureKap, a Georgia-based capping machine OEM with a 30-year reputation. The thesis: bolt on complementary OEMs, add high-margin recurring revenue, and unify under one brand to capture platform economics.
Within 24 months, SureKap became Excelis Packaging Automation—a full-line provider covering filling, capping, labeling, case packing, and material handling, backed by a robust aftermarket parts & service division. The result: TAM expansion, margin stability, and a clear path to premium multiple territory.
How LFM Created Platform-Scale Value
1. Built the Complete Solution to Expand TAM
Filled capability gaps with acquisitions in filling, labeling, and end-of-line automation, transforming Excelis into a turnkey provider.Why it matters: Complete solutions increase share of wallet, enable premium pricing, and differentiate in competitive bids.
2. Engineered Margin Stability Through Recurring Revenue
Acquired Technical Beverage Services and Marks Machinery, both with strong aftermarket parts & service streams.Why it matters: Recurring, high-margin revenue offsets capital equipment cyclicality, improves gross margin, and stabilizes cash flows.
3. Captured Geographic Advantage
Expanded presence across the Southeast, Midwest, West Coast, Canada, and into Latin America.Why it matters: Regional proximity cuts service times, increases retention, unlocks cross-sell, and reduces concentration risk.
4. Drove Margin Expansion Through Integration
Centralized procurement, standardized engineering, and balanced production loads across top-performing facilities.Why it matters: Consolidation and process discipline lower COGS, boost throughput, and deliver EBITDA lift without extra volume.
The Excelis Value Creation Playbook
Engineer Margin Stability Through Recurring Revenue – Acquire aftermarket and consumables revenue streams.
Expand TAM Through Solution Completeness – Fill product and service gaps to win larger contracts.
Capture Geographic Advantage – Acquire in target regions to expand sales and service reach.
Centralize Cost Levers While Preserving Market Position – Standardize back-office and procurement without eroding brand equity.
Track Synergy Realization Monthly – Quantify and manage the EBITDA impact of integration.
Takeaway
Excelis shows how a targeted, sequenced roll-up plus disciplined integration can push a platform from mid-single-digit EBITDA multiples to premium exit territory.
If you’re holding a sub-$100M asset, the time to build these levers is before your first acquisition, not after.