Press Release:
Graham Corporation ("Graham” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, announced today that it has acquired P3 Technologies, LLC (“P3”), a custom turbomachinery engineering, product development and manufacturing business for the space, new energy and medical markets.
Based in Jupiter, Florida, P3 has established a strong reputation in the development of state-of-the-art rotating machinery including pumps, compressors, and turbines and are specialists in high-speed rotors and cryogenic pumps. With an experienced team of highly skilled gas-turbine engineers, P3’s development process results in innovative solutions to complex technical challenges.
Daniel J. Thoren, President and CEO, commented, “This is an excellent demonstration of the acquisition element of our growth strategy. P3 is an ideal bolt on business and brings highly complementary technology that enhances and expands our turbomachinery solutions. Our Barber Nichols’ team will provide the experience and know-how for addressing the anticipated rapid growth to support P3’s growing backlog and its funnel of opportunities. Importantly, P3 also is bringing unique intellectual property that we believe we can leverage to expand the market potential of the business. We are excited about our future opportunities and welcome P3 to the Graham team.”
High Value Add Technology
P3 has a strong intellectual property portfolio including the patented Multi-Channel Diffuser (“MCD”) and Self-Contained Actuating Magnetic Pump (“SCAMP”). These products provide a product family platform that can be leveraged across many applications and industries.
The MCD is revolutionary diffuser technology that improves the efficiency of pumps and compressors by increasing pressure recovery up to 20% and measurably increasing operating range. The MCD can be used in new designs or retrofit applications and can work with any pump or compressor that utilizes a centrifugal impeller.
SCAMP is a family of positive displacement pumps for low flow, high pressure cryogenic applications compatible with oxygen, hydrogen, methane and nitrogen.
P3 also has developed a family of turbopumps ranging in thrust from 5 thousand to 200 thousand pounds. The turbopumps are designed using state-of-the-art flow path design enabled by additive manufacturing to provide higher performance at competitive prices.
In addition, P3 has created robust turbomachinery development tools which enable efficient design iteration cycles reducing lead times to product launches for customers.
Solid Financial Performance; Transaction Terms
P3’s annual revenue is expected to be approximately $6.0 million in fiscal 2023 with gross and adjusted EBITDA margins that are consistent with Graham’s fiscal 2027 goal of low- to mid-teen adjusted EBITDA margins. Backlog at October 31, 2023 was approximately $8 million. We believe P3 has a pipeline with significant upside potential.
A stock and cash transaction, P3 was acquired from its sole owner who, along with P3’s leadership team, will remain with the Company. The acquisition price has not been disclosed at this time. However, the stock element of the purchase price is valued at $2 million and the number of shares of Company’s common stock issued as part thereof was determined using a stock price of $15.92, which represents the average closing price for the Company’s common stock for the 10 trading days ending on November 3, 2023.
Accompanying Slides
Graham has posted slides that accompany this release on its investor relations website.
