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2008 Overview

Target Eagle Overview 2007 (2)

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Page 1: Target Eagle Overview 2007 (2)

2008 Overview

Page 2: Target Eagle Overview 2007 (2)

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Eagle’s Solutions Vision:

To provide our customers with the best overall value

with innovative technology and cleaning Solutions

To

“Dramatically Drive Down Your Cost to Clean.”

Page 3: Target Eagle Overview 2007 (2)

Facility

• Eagle owns a modern 50,000 square ft. building with decorative poured-wall, T-Panel construction on over 9 acres of land.

• The warehouse portion of the building has a polished concrete floor.

• The property offers the ability to add at least another 50,000 square feet.

Page 4: Target Eagle Overview 2007 (2)

Location

• Eagle is located within a new industrial park in Adairsville, Georgia.

• The company is approximately 60 miles north of Atlanta and 60 miles south of Chattanooga, and is within one mile of Interstate 75.

Page 5: Target Eagle Overview 2007 (2)

Ownership History

• Eagle Solutions began business in 1989 as Eagle Floor Care, Inc. The company was started by David R. Walker, who ran the company until his retirement in February of 2007.

• Castex (now part of Tennant Company) purchased Eagle in 1995.

• Eagle Solutions, LLC was formed to buy the company back from Castex in August of 1999.

• Eagle Solutions Acquisition Corp purchased Eagle Solutions, LLC in December 2004. Eagle Solutions Acquisition Corp is owned by Bradford Equities Management, L.L.C.

Page 6: Target Eagle Overview 2007 (2)

Current Ownership• Eagle Solutions is owned by Bradford Equities Management,

L.L.C. in White Plains, New York.

• Bradford is a private equity firm dedicated to investing in and building high-quality middle-market companies in partnership with management. 

• Since 1974, Bradford Equities Management, L.L.C. and its affiliates have acquired more than 150 companies with sales in excess of $4.0 billion and whose total transaction values have exceeded $2.0 billion.

• Bradford Equities Management, L.L.C. has substantial equity capital available for investment and its Limited Partners include many premier United States and foreign financial institutions, insurance companies, foundations, corporate pension plans and wealthy families. 

• Bessemer Securities Corporation and foreign clients of Bessemer Trust Company, N.A. have been in partnership with BEM and its affiliates since 1974.

Page 7: Target Eagle Overview 2007 (2)

CEO

• Mark Magee was appointed the CEO of Eagle Solutions March of 2007.

• He comes with 25 years of experience with Tennant Company.  

• Mark brings a wealth of experience and knowledge in industrial equipment, commercial products, and also the floor coating businesses.

• Over the past few years he has been working with the National Account Team to develop traditional, industrial, national customers like Pepsi, Coke, UPS and most recently the Retail, Building Service Contractor, Health and Hospitality markets with phenomenal growth.

Page 8: Target Eagle Overview 2007 (2)

Company Strengths

• Known as an established leader in the propane business.

• Eagle has proven, working products in the stone/concrete polishing market that are readily being accepted.

• We have key dedicated employees that are excited about the future of the company.

• Eagle utilizes a company sales team as well as external rep groups and master distributors to market our products throughout the world.

• National Service Coverage

• Company President with a proven record of successfully developing business relationships and increasing market share.

Page 9: Target Eagle Overview 2007 (2)

Floor Maintenance EquipmentBurnishers• Ergonomic design

• Enviro Pro Line

• Heavy duty construction

• Adjustable handles and wheels

• EPA & CARB approved

• Variety of sizes

• Active Vacuum Dust Control Burnishers

Strip Machines• 10” no-flat tires

• Durable & high powered

• Multi surface including wood screening

• EPA & CARB approved

Talon

Walk About

Dust Control

Tracker

Road Runner

Wood Master

Page 10: Target Eagle Overview 2007 (2)

Product History• The founding focus for Eagle has been the manufacture of

propane powered buffers and strippers along with related chemicals and cleaning agents.

• In 2004 the company began development of concrete polishing equipment which has enabled us to reach new markets for LP powered equipment.

Page 11: Target Eagle Overview 2007 (2)

Cleaners & Strippers

• Reclaim – cleans and enhances floors in one step

• Neutral – low foaming, daily floor cleaner

• Winter Blue – neutralizes ice melt chemicals and removes hard water deposits

• Power Scrub – excellent deep scrubber & for removing greasy build-up

• d-Limonene – removes tar, oil, & adhesives

• Aggression – cool water stripper, evaporates slowly

• Vengence – quick acting stripper with less dwell time

• Green Cleaners and Strippers to be ready by 2Q 2008

Page 12: Target Eagle Overview 2007 (2)

Coatings• High gloss

• Wet look shine

• Heavy traffic solutions

• Variety of maintenance schedules

• Non-yellowing

• Non-powdering at ultra high speeds

• Special solutions for wood & stone

Page 13: Target Eagle Overview 2007 (2)

EcoScrub-N-Buff In Operation

Page 14: Target Eagle Overview 2007 (2)

EcoScrub-N-Buff

Page 15: Target Eagle Overview 2007 (2)

Level Of Polish

Page 16: Target Eagle Overview 2007 (2)

ROI Analysis– Full Scope Cleaning

• Target Stores

Larger Stores 650 x 57,570’ = 37 Million

Smaller Stores 950 x 43,806’ = 41 Million

Total 78 Million

Larger Stores > Full Scope Cleaning

Auto Scrub: 28 hrs/wk

Burnish: 24 hrs/wk

Smaller Stores > Full Scope Cleaning

Auto Scrub: 21 hrs/wk

Burnish: 14 hrs/wk

Page 17: Target Eagle Overview 2007 (2)

ROI Analysis

• Target Smaller Stores

950 x 14 hours = 13,300 hours

13,300 hours x 52 weeks = 691,600 hours

• Target Larger Stores

650 x 28 hours = 18,200 hours

18,200 hours x 52 weeks = 946,400 hours

Total Burnishing Hours Annually 1.6 Million

Page 18: Target Eagle Overview 2007 (2)

ROI

• 1.6 million hours x estimated FTE $13.00 per hour W/Benefits = $20.8 Million Savings Annually

Page 19: Target Eagle Overview 2007 (2)

Enviro Scrub-N-Buff - ROI• Equipment Cost (Total Less Sales Tax): $17,000.00 Equipment Description to

be financed: EcoScrub-n-Buff: Floor burnisher and scrubber in one machine Stop paying two people what one you can do with the EcoScrub-n-Buff! How much money can you save by implementing this machine on your jobs? Enter the labor rate (don't forget taxes and benefit costs per hour) and the number of hours saved each week below to find out how quickly the EcoScrub-n-Buff will pay for itself. Labor Rate: $13.00 Annual Labor Savings: $14,194.91

• Estimated Weekly Hours Saved: 21

• Machine Cost $17,000.00 Monthly Labor Saved: $1,182.91 Months Machine Pays for Self $14.37 Lease Proposal: $1.00 Purchase Option at End of Lease Lease Term: 12 24 36 48 60 Monthly Payment: * $1,614.66 $853.23 $605.54 $483.82 $409.87 Purchase Option: $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 # of Advance Payments: 0 0 0 0 0 Initial Payment Due: * $95.00 $95.00 $95.00 $95.00 $95.00 * All costs are subject to sales/use tax where applicable and a one-time documentation fee that can be billed on your first invoice.

• Monthly Savings: $(431.75)   $329.68   $577.37   $699.09   $773.04 Annual Savings: $(5,181.01)   $3,956.15   $6,928.43   $8,389.07   $9,276.47 You may purchase the equipment for $1.00 at the end of the lease.

Page 20: Target Eagle Overview 2007 (2)

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Eagle Solutions

Target Stores1600

21- BSC’s

430 Nation Wide Service Centers

Eagle Solutions – Circles The Customer’s Needs

Page 21: Target Eagle Overview 2007 (2)

National Account Service430 + Nation-Wide Service Providers

Page 22: Target Eagle Overview 2007 (2)

National AccountsBest Practices

Best Practice: Selling Value & Commitment

• National Account Pass through pricing provides stable pricing in the market place

• National Account Service Priorities

• National Account Order Inventory Stocking Priority

• National Account Pricing, Regional assistance, Headquarters, marketing communications, on-line web support

Page 23: Target Eagle Overview 2007 (2)

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Target - Pass Through Pricing available To Their Building Service Contractors Under

Contract?• Any of the 20 Building Service Contractors currently under

contract with Target would be able to purchase from Eagle Solutions utilizing negotiated National Account Pricing by Eagle and Target Corp.

• The equipment must ship to the location under contract number

• Benefits:– Enables the contracted customer to purchase equipment at a lower

cost increasing their bottom line (win for Target, win for Facility, and a win for Eagle)

– Training supported through our National Accounts Program – The volume rolls up to a Target total spend; which goes toward an

annual Growth % rebate that maybe established – Unified equipment across all regions; easy to troubleshoot issues

with service manager and facility

Page 24: Target Eagle Overview 2007 (2)

For every $10,000 of machinery/supplies:

3 Year $336.00

4 Year $267.00

5 Year $226.00

Payments may vary depending upon credit history, down payment and lease options.

Leasing Options

• Easy payment options

– Term length– Buyout cost– Deferrals– Down payments– Operating Leases

• Possible tax savings

– May be deducted as an operating expense

• Increase profits immediately

• Conserve working capital

• Monthly cost is known

• Provides a hedge against inflation

– New equipment is obtained today and paid with tomorrow’s dollar

Page 25: Target Eagle Overview 2007 (2)

Why Propane?• No cords

• No Costly Replacement Batteries

• Lower Carbon Foot Print For The Environment

• Consistent power source, readily available

• Higher Productivity

• Engine parts easily accessible

• Designed and manufactured in the United States

Page 26: Target Eagle Overview 2007 (2)

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National Account Manager

Yes… I’m the one in the middletrying to negotiate a deal

Page 27: Target Eagle Overview 2007 (2)

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Success Takes Risk and Effort!Success Takes Risk and Effort!

Page 28: Target Eagle Overview 2007 (2)

Eagle Solutions

Better Results, Period.

“ We are looking forward to working and growing our businesses together.”

THANK YOU!