Advanced Concrete Tools is a manufacturer of concrete placement and finishing equipment. It has a strong brand and patented technologies. The company aims to rapidly expand globally through partnerships, new products, and manufacturing in Brazil and the US. It seeks initial capital of $650,000 for marketing, product development, and Brazil expansion, and additional future funding for acquisitions and manufacturing.
2. Advanced Concrete Tools, Inc.
Advanced Concrete Tools Is Engaged in Design, Manufacture and
Marketing of Product Solutions for the Concrete Placement and
Finishing Industry
Vibratory Wet Screeds
Concrete Vibrators
Curb Roller and Roller Screed
Concrete Hand Tools
Concrete Chemical Solutions
Indiana Universitys New End Zone Seating Facility
3. Advanced Concrete Tools, Inc.
Market Position
500 Plus Dealers in Our
Network
Over 10,000 Contacts in Our
Data Base
A Strong Brand Presence
$100 Bil Global Equipment
Market Interstate-35W crossing over the
Mississippi River in Minneapolis
Developing Critical Global
Relationships
4. Advanced Concrete Tools, Inc.
Investment Objective
Our Objective is to Significantly Increase the Value of ACT as a
Strategic Investment
Rapidly Expanding Our Capability to Participate in the World
Wide Investment in Infrastructure Development
Developing Partnerships With Major International Firms
Utilize Our Channel to the US Equipment Market
Provide ACT Products Access to Global Markets
Increasing Our Manufacturing Value Add in the US
Development of Proprietary Technology
Rapidly Expanding Our US Market Channels
Creation of Manufacturing and Distribution in Brazil
Managing the Business to Attract Private Capital Investment
to Execute Growth Strategies
Develop ACT as US Manufacturing Partner
Complementary Acquisitions
5. Advanced Concrete Tools, Inc.
Strengths
Brand Awareness Through
Over 3000 Contacts in the US
Product Reputation for
Performance and Reliability
Patented Bar That Significantly
Outperforms Other Bars
Ability to Partner With Major
International Firms
Management Team Experience
in Successful Businesses
All Night Pour at Denver Museum of Science
6. Advanced Concrete Tools, Inc.
Primary Success Factors
Become an Increasingly Significant and Important to Our
Distribution Channel Partners
Manufacturers Representatives
550 US Dealers
Focusing on Products That Enable the Concrete Contractor
Rapidly Adding High Value Products to Provide Our Distribution
Partners an Opportunity to Sell Everyday
Increasing Awareness of Concrete and Construction Contractors
to Our Products and Our Brand
Implementing Effective Merchandising and Promotions to Sell
Through Our Channels
Industry Leading Warranty and Outstanding Product Service
7. Advanced Concrete Tools, Inc.
Founded in 1996 in Hendersonville
Tenn. By Roy Frazier
Acquired Design and Patents From
Weber Concrete Tools of Fort Smith,
Ark.
Developed Distribution in 50 States
Founder Died From Sudden Heart
Attack
Wife Kim Ran Company After Roys
Death
Paid Down Debt
Maintained Steady Sales
Conservative Financials
Run As Life Style Business
8. Advanced Concrete Tools, Inc.
Market Summary
$5.6 Trillion Global Construction
Industry
$100 Billion Construction Equipment
Industry
$60 + Billion Ready-mix Concrete
Production $30 Billion US
The North American Equipment-
rental Industry $38.3 Billion in the
United States and $3.0 Billion in
Canada.
Twin Condominium Towers Site in Miami
9. Advanced Concrete Tools, Inc.
United States Customer Base
There Are 32,583 Concrete Contractors
in the United States
5,444 in the Southeast
2,105 in Florida.
3,276 in California
2,113 in Texas
There Are 9,444 Ready Mixed
Concrete Manufacturers in the
United States.
11. Advanced Concrete Tools, Inc.
ARA 2008 State Of The Equipment-Rental Industry Report
The North American Equipment-rental Industry Is the Largest in the
World, Generating $38.3 Billion in the United States and $3.0 Billion
in Canada.
Construction & Industrial Equipment Generated 69% of the Revenue
With $24.5 Billion.
General Tool Accounted for $8.4 Billion in Rental Revenue in 2008,
Which Remains Consistent With 2007 Rental Revenue of $8.5
Billion.
2008 Revenue Was Only Down (2.7%) From 2007. Declines Are
Not Expected to Last in 2011 & Beyond.
12. Advanced Concrete Tools, Inc.
Global Stimulus
The Potential Boost to the Global
Construction Industry From Fiscal Stimulus
Packages Over the Next Two Years Could
Be Enormous.
US$ 355 Billion Is Greater Than the
GDP of Many Medium-sized
Countries, Florida Hospital Memorial Division
It Is Greater Than the Size of the Project in Daytona Beach
German Market - the Fourth Biggest
Market in the World
Additional Spending to Shore-up
Economic Growth in 20 Major
Economies Is Set to Exceed US$ 1.9
Trillion, of Which US$ 795 Billion Has
Been Ear-marked for Construction
Most of This Will Be Spent in 2009 and
2010
Downtown Mall Light Rail Extension
Project. Portland, Ore.
13. Advanced Concrete Tools, Inc.
Global Stimulus
China's Extra Investment US$ 450 Earmarked
for Infrastructure. Its Investment of US$ 225
Billion Per Year for Two Years Is Equivalent to
an Extra +40% Boost to Its US$ 540 Billion
Per Year Construction Output.
United States Us$ 130 Billion Out of of Us$
800 Billion Invested in Transport and Energy
Infrastructure.
Germany Eur 18 Billion (Us$ 23.4 Billion) California Science Center Expansion
France Will Invest EUR 10.5 Billion (US$ 14 In Los Angeles
Billion)
Spain's EUR 11 Billion (US$ 14.5 Billion)
Construction
Chile $ 700 Million to Public Works This Year
Mexico US$ 54 Billion
Access Shaft of the East Side
Combined Sewerage Overflow
Tunnel Project in Portland, Ore
14. Advanced Concrete Tools, Inc.
Residential construction spending is 59.3% below the peak of early
2006
Non-residential construction spending is 8.5% below the peak of
last September
15. Advanced Concrete Tools, Inc.
Nonresidential spending is now slightly
negative on a year-over-year basis, and
will turn strongly negative going forward.
Residential construction spending is still
declining, although the YOY change will
probably be less negative going forward.
16. Advanced Concrete Tools, Inc.
Business Development
A 450-ton Deck Section on the New The Long Tan Hydropower Plant in
Tacoma Narrows Bridge Tian, China
Structural Engineering Teaching & Benicia-martinez Bridge in Northern
Research Laboratory for Villanova California
University's College of Engineering
18. Advanced Concrete Tools, Inc.
Business Development
Developed an OEM Agreement With Stone
Construction Equipment to Provide Screeds
Under Their Brand World Wide
100% Employee-owned
Design, Manufacture and Marketing of Light and
Medium Construction Equipment.
Over 375 Products All Designed and Manufactured
for Worldwide Distribution
Concrete and Mortar Mixers
Power Trowels
Concrete and Masonry Saws
Hand Held, Walk Behind and Ride on Dirt and
Asphalt Compactors and Material Handling
Equipment
Founded in 1967 and Is Located in Honeoye, New Screed Bull
York, in a 175,000 Square-foot Facility
19. Advanced Concrete Tools, Inc.
Business Development
Developed an Exclusive
Arrangement to Distribute
Spyder Electronic High Frequency Vibrator
ENAR Vibrators and
Screeds in the United
States and
Now selling the ENAR
Products Into the US
Market
Dingo High Frequency Electric Vibrator
20. Advanced Concrete Tools, Inc.
Business Development
Agreement With Nox-Crete Chemical to
Expand Our Line of Concrete Chemical
Solutions
Concrete Bomb - Original Concrete Blast Off
Concrete Bomb - New Green Chemically reacts with concrete and mortar
Chemically reacts with the alkalies in concrete buildup. This effervescent reaction quickly
to instantly prevent fresh concrete from bubbles away buildup. Byproducts are easily
bonding and to gradually soften existing rinsed away with water
concrete buildup. Apply before each use.
Bio-Klean
Concrete Gardcoat
Chemically reacts instantly when applied to Concentrated, Biodegradable,
form a waxy, protective coating that is both Citrus Based Concrete Cleaner
chemically and physically welded to the And Degreaser.
surface. a powerful, water dilutable cleaner that deeply
penetrates concrete surfaces to safely and
effectively remove most surface contaminants.
21. Advanced Concrete Tools, Inc.
Business Development
Agreement With Goldblatt Hand Tools to
Distribute Their Line of Concrete Hand
Tools in the United States
Founded 1885 120 Year History
Stanley Works Purchased the Goldblatt in
1992
In March, 2006, Finishpro Tools Purchased
the Brands From Stanley Works
Goldblatt Tool Company LLC Became Its
Own Business in 2006 and Returned to
Kansas City
22. Advanced Concrete Tools, Inc.
Business Development
Reached Agreement With Curb Roller
Manufacturing to Distribute Their Line of
Hydraulically Driven Products in the United
States
Reached Agreement with Allen Face Companies
To distribute their patented Laser Screed Rail
23. Advanced Concrete Tools, Inc.
Business Development
Developed New Distribution in Florida, Southeast US and Far West
24. Advanced Concrete Tools, Inc.
Business Development
Upgraded to a State of the Art Scalable CRM System
25. Advanced Concrete Tools, Inc.
Business Development
Have Begun Test Marketing
Screeds and Vibrators in
Southern Brazil
Response Has Been Very
Positive
Increasing Manufacturing
Input Is Required to Overcome
Import Barriers
The Brazil Opportunity Is
Second Only to China
The basic infrastructure in
place to begin marketing in
2009
26. Advanced Concrete Tools, Inc.
Economic & industrial performance
Gross Domestic Product
Source: IBGE Brazilian Institute of Geography and Statistics Latest update: Upgraded to investment-grade in 2008
Source: Brazilian
Ministry of Petrobras
Itaipu dam Finance, Moody's oil rig Embraer jet
and Fitch.
Economically, Brazil has performed very strongly, reflected in its improving risk rating
Brazil has a highly developed industrial base, enjoying world leadership in many sectors:
Hydro-electric power; Itaipu dam is the world's largest hydroelectric plant
Mineral production; local oil giant Petrobras is a pioneer in the field of deep water oil research.
Aircraft manufacturing; local company Embraer is the world leader in the design & development of smaller scale jet
aircraft
Agriculture production, particularly Biofuels, where Brazil is the largest producer
Advanced space program, with significant launch capabilities and satellite manufacturing
4
27. Advanced Concrete Tools, Inc.
Infrastructure Development
Sao Paulo, a modern
international city of over
10m people, with 1st
world infrastructure
services
Sao Paulo metro, which
has received awards in
the recent past as one of
the cleanest systems in
the world by ISO9001.
Sao Paulo airport: Brazil has the
Curitiba: internationally recognised as a Porto Alegre: home to
2nd largest number of airports in
model city for urban & infrastructure modern infrastructure, incl
the world (~3,000)
development. metro system
4
28. Advanced Concrete Tools, Inc.
Next Products
Introduction of Platinum Beauty With
Equilateral Triangle Bar
Add ENAR Back Pack Vibrator
Add ENAR Vibratory Float
Add Laser Rail
Evaluate Opportunities to Add a Line of
Compaction and Power Trowels to Our
Product Line
Enar
Kentsel Machinery Company
Turkey
Dynapac France
Rhino-tuff USA
Ingersoll-Rand Small
Equipment Line
29. Advanced Concrete Tools, Inc.
US Equipment Distribution
Equipment Supply
White Cap Supply
Ram Tool
Rental
United
Sunbelt
RSC
CAT Rental
Major Construction Firms
Construction Supply
Internet Construction Complete
30. Advanced Concrete Tools, Inc.
Sales Strategy
Implement Floor Plan and Sales Incentive Program with Major
Accounts
Utilize CRM to implement systematic initial contact and sales
follow up
5-STAR Dealers
Solution Programs Major Dealers
Hot Zones - L.A, N.Y, and Chicago, Houston, DFW
End-Users / Mega-Buyers
Relationship Development
Easy to buy Easy to Sell
Superb Product Availability and Customer Service
Expanded relationship with Stone and ENAR
31. Advanced Concrete Tools, Inc.
Major Customer Targets
Ram Tool Southeast US 15 locations
Stowers CAT East Tennessee
Puckett CAT - Mississippi
Thompson CAT Alabama, Georgia, North Florida
Gerdau - Enco group Southeast 8 Locations
SCS Southeast 4 Locations
American Construction California
McCann - Chicago
Lincoln Construction - Ohio
Mustang CAT - Houston
32. Advanced Concrete Tools, Inc.
Marketing Strategies
Implement improved Web Site and Strategies to
Increase Hits and Opt Ins
Build Contacts From the Blue Book of Concrete
Contractors in Focus Areas
Enhance Email, Direct Mail and Fax Capability to
Professionally Reach Decision Makers
Develop Effective Trade Advertising
Evolve Viral Marketing and Networking Strategies to
gain access to early adopters in the industry
33. Advanced Concrete Tools, Inc.
Competition
Multi Line Manufacturers
Atlas-Copco - Sweden $8.9 Bil Sales
Wacker Corp - Germany $1.2 Bil Sales
Doosan - South Korea - $15 Bil Sales
Multiquip Inc. - Carson, California $100 Mil +
Stone Construction Equipment - Honeoye,NY $50 Mil +
Allen Engineering- Paragould, Arkansas
MBW - Slinger, Wisconsin $30 - $50 Mil
34. Advanced Concrete Tools, Inc.
Consolidation
Dynapac Acquired by Atlas-Copco of Sweden
Wacker Corp acquired Neuson Equipment
Doosan aquired Construction Equipment line from
Ingersoll Rand
Multiquip aggressive acquirer of brands
35. Advanced Concrete Tools, Inc.
Small Equipment Segment Open to Focused Business
Focus on Large Equipment Sales Leaves Small
Equipment Market Underserved
Relatively Low Brand Awareness and Loyalty
Dealers Evolve Toward Multi-line Suppliers but Will Sell
Products Their Customers Are Seeking
Multi-line Suppliers Such as Multi-Quip are effectively
roll ups lacking credibility with the end users
Contractors Tend to Return to What Works but Are
Very Receptive to Try New Products
Dynapac and Ingersoll Rand exit small equipment
segment
MBW and other firms struggling financially
36. Advanced Concrete Tools, Inc.
Capital Structure
Immediate Financing Requirements
$350,000 Replace Existing Bank Financing
$50,000 ENAR Letter of Credit
$50,000 Bank Line of Credit for Working Capital
$200,000 First Round Equity Investment for
Marketing, Product Development and Brazil
Second Round Financing
$50,000 Additional ENAR Line of Credit
TBD Bank Financing and Private Equity for
Acquisition and US - Brazilian Manufacturing