Business Description

AFPG is a specialty contractor that designs, fabricates and installs fire protection (sprinkler) systems for commercial, industrial and other specialized facilities throughout the Southern U.S.  The company conducts its operations through a number of independent sales, design and installation offices and a centralized fabrication shop that supplies fire protection systems to its own regional offices and to other contractors.  AFPG specializes in complex, large-scale construction projects that can require several years to complete and also performs a variety of related inspection, repair and retrofit work.

Background

The investment in AFPG was made in conjunction with the majority acquisition of the business from its two founders.

Select Value Creation Initiatives

• Provided input into the bid pricing strategy, incentive plans and working capital management to position the company to withstand the commercial construction downturn.
• Identified and assisted the company in securing incremental performance bonding resources during the contraction in the insurance underwriting market.

Outcome

Nicolet Capital’s President initiated a recapitalization of the investment in AFPG in 2005 resulting in an attractive total return on the combined junior debt and equity investment.