NCI Inc., a Plymouth based scientific distributor of medical microscopes, has purchased Kruge
Air, a Twin Cities based distributors of major air compressor brands, for $1.2 million, in an effort to diversify its product base.
The sale was facilitated by Sunbelt Business Brokers-Midwest and brokers Matt Schroeder, Mike Wheelock and Nacia Dahl. These brokers bridged the gap between a medical products company and air compressor manufacturer to complete the sale.
“NCI was facing a large proportion of it distribution of microscopes to drop and they had excess staff that could learn the air compressor sales program,” Wheelock said. “It’s the same kind of distribution market, but different product.”
NCI has been in a period of growth – with sales growing from $16 million in 2011 to over $25 million last year – but was seeking acquisitions that would keep revenue from flattening, a spokeswoman for NCI said.
The acquisition closed August 15.
NCI deal of Osseo-based Kruge followed the April acquisition of Unique Tool, a tooling company based in Hutchinson, MN. “Our strategy is to acquire strong organizations who share a similar customer base,” said NCI CEO Brad Johnson.
Wheelock said NCI is constantly looking for similar product lines to acquire. “They trust us and we found the business they wanted. They weren’t comfortable at first with going into manufacturing, but now they are very comfortable.”
He added that Kruge was pleased that the deal with NCI would recapture the furniture, fixtures and equipment, was a cash offer and would maintain the employee workforce.
“What’s funny as when we were leaving the closing on this deal, I asked NCI CEO Johnson if he was ready to acquire another tool and die shop that had recently come on the maket,” Wheelock said. “He was intrigued and said to come back in a couple months once they settle into their new role as metal and air compressor production facilities.”
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