At Cambria Group, Less Proves to Be More –

The Cambria Group, a Menlo Park, Calif.-based private equity group, is looking for small deals and, if successful at those, will look for more of the same.

The firm in late March completed a buyout of DSA/Phototech, a Los Angeles-based manufacturer of illuminated display equipment with sales of less than $10 million. Terms of the transaction were not disclosed. As was the case with DSA/Phototech, Cambria prefers to invest in low-tech companies that are small but profitable.

According to Lew Davies, one of the firm’s two partners, most transactions of more than $20 million are too competitive for Cambria. His firm likes to put between $1 million and $3 million of equity into a company-an arena where Mr. Davies claims he sees multiples of between 3.5 and 6 times EBIT.

Cambria gets most of its deal referrals from larger buyout shops, Mr. Davies said.

Cambria plans to have between eight and 10 stand-alone companies in its portfolio over the next few years, according to a statement from the firm. Any opportunities to do roll-ups, Mr. Davies added, would be “gravy.”

Cambria also will avoid the lure of a fund, Mr. Davies said, because that would push the firm into a pricier deal bracket. Instead, Mr. Davies and his partner, Christopher Sekula, will continue to troll for small companies to add to their portfolio.