LFM Capital has made an investment in Madison Heights, Michigan-based Diamabrush, a maker of abrasive brushes and replacement blades. No financial terms were disclosed. FINNEA Group acted as financial advisor to Diamabrush as part of the transaction.
NASHVILLE, TN – September 29, 2020 – LFM Capital, a private equity firm focused on lower middle market manufacturing and industrial services businesses, announced today that it has partnered with management and made an investment in Diamabrush, a new LFM portfolio company.
Diamabrush, headquartered in Madison Heights, Mich., manufactures diamond abrasive brushes and replacement blades that are used primarily for polishing and maintaining concrete floors commonly found in retail stores and industrial facilities. The company also manufactures floor restoration and surface preparation brushes that cater to both professional and DIY customers and can be used on a variety of surfaces including concrete, terrazzo, wood, and metal. Diamabrush’s products are sold directly to industrial and retail end customers who use them as a part of routine daily floor maintenance, as well as through distribution, retail, and online channels.
Diamabrush’s product portfolio has been developed through years of extensive research, development and testing that has produced nearly 40 patents. The company’s products are easier to use and can lower total cost of floor ownership by more than ten times compared to other alternatives, enabling customers to transition from expensive, lumpy facility improvement expenses to minimal daily maintenance costs. Additionally, Diamabrush’s products provide a chemical-free method of maintaining and polishing concrete floors, improve aesthetics, provide tangible energy cost savings (highly polished floors increase light reflectivity, allowing customers to use lower wattage lightbulbs), and increase cleanliness by reducing dust and dirt – particularly important in today’s environment.
“Diamabrush’s highly differentiated, easy to use tools and products, along with the customer service that stands behind them, are highly regarded for outstanding quality and performance,” commented LFM Managing Director Dan Shockley. He continued, “We look forward to partnering with Mike Sancimino and the exceptional team at Diamabrush to leverage that successful foundation to drive further growth and expansion.”
Diamabrush was founded in 2007 by Simon Palushaj and President Mike Sancimino. Simon Palushaj commented, “We are excited to partner with LFM. They came into our first meeting understanding our products and the unique value we provide to customers who want to maintain pristine floors but are trying to move away from multi hundred-thousand-dollar floor rejuvenations.” President Mike Sancimino added, “LFM’s industry knowledge and operational expertise set them apart from the other parties we talked to and we felt there was a strong cultural fit early on. I’m excited about what lies ahead with our partnership.”
“LFM’s investment will provide Diamabrush the ability to serve more customers directly. Working together to expand their direct customer service model will be a great way to start our partnership,” commented LFM Director Conner Harris. “Additionally, we believe that Diamabrush’s ability to help customers create safer environments for end users and customers is particularly compelling given the extensive focus on cleanliness and sanitation following the onset of COVID-19.”
Working with Shockley and Harris on the investment from LFM were Managing Director Chris Lin and Senior Associate Wilson Ren. Jessica Ginsberg, LFM Director of Business Development, helped source the opportunity. FINNEA Group acted as the exclusive financial advisor to Diamabrush as part of the transaction.
About LFM Capital
LFM Capital is a private equity firm based in Nashville, Tennessee. The LFM team is led by experienced and successful Fortune 50 global executive managers and private equity professionals who bring decades of management leadership, operating best practices, exceptional professional recruiting networks, and a successful track record in lower middle market investing. LFM targets lead or control investments in U.S.-based lower middle market manufacturing and industrial services companies with at least $3 million of EBITDA and enterprise values ranging from $15 million to $125 million. The firm’s mission is to partner with portfolio company management to develop and build world-class operations through a combination of manufacturing and operations excellence and targeted growth and expansion strategies. For additional information, visit www.lfmcapital.com.
Founded in 2007, Diamabrush develops, manufactures and markets advanced abrasive technology utilized in various building, maintenance and construction applications. Through years of research and development, the company has developed a core portfolio of products used for surface preparation and finishing applications, including coating removal (e.g., urethanes, varnishes, black mastic, thin set, glue and epoxy), scarifying, honing, leveling, sanding and polishing. For more information, visit www.diamabrush.com.