Graham (GHM) Investor presentation summary

Transaction overview

• Acquired 100% of FlackTek for $35 million, with 85% cash and 15% stock, plus a potential $25 million earnout over four years based on EBITDA targets.

• Purchase price equates to approximately 12x FlackTek's projected 2026 adjusted EBITDA.

• FlackTek generates about $30 million in annual revenue and adds $5 million to backlog, all expected to be recognized within twelve months.

• Transaction funded by available liquidity and expanded $80 million revolving credit facility; post-transaction leverage ratio is ~1.2x.

• FlackTek CEO Matt Gross joins as VP & General Manager, ensuring leadership continuity.

Strategic rationale and integration

• Acquisition establishes advanced materials processing as a scalable third core platform.

• FlackTek's proprietary bladeless mixing technology complements existing vacuum, heat transfer, and turbomachinery platforms.

• Expands ability to deliver integrated solutions for complex customer challenges across defense, energy, food, battery, aerospace, medical, and industrial sectors.

• Large installed base drives recurring revenue from consumables, accessories, and services, enhancing revenue visibility and margins.

• Deal structure supports strong returns and preserves balance sheet flexibility.

FlackTek company and product highlights

• Headquartered in Louisville, CO, with a distribution facility in Greenville, SC, and about 55 employees.

• Recognized leader in high-performance, bladeless centrifugal mixing, serving global OEMs, R&D centers, and industrial manufacturers.

• Proprietary MEGA mixer enables multi-hundred-kg batch processing, validated in mission-critical applications like solid rocket motor propellant production.

• MEGA platform delivers over 24x throughput versus conventional mixers, reducing cycle times and improving cost efficiency.

• Over 2,500 units installed, with 20+ patents and pending applications.