South-Tek Systems, LLC

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South-Tek Systems, LLC - overview

Established

1997

Location

Wilmington, NC, US

Primary Industry

Industrial Machinery

About

South-Tek Systems, LLC designs and manufactures on-demand nitrogen generators, specializing in high-purity nitrogen solutions for various industries, promoting operational efficiency and sustainability. Founded in 1997 and headquartered in Wilmington, US, South-Tek Systems, LLC focuses on providing nitrogen solutions through innovative generator technology. The company has undergone a strategic growth transaction with Pfingsten Partners and its management in November 2018, enhancing its operational capabilities. South-Tek Systems specializes in manufacturing Mission-Critical Nitrogen™ generators that provide on-demand high-purity nitrogen solutions.


Their core product offerings are designed to enhance operational efficiency and sustainability across various industries, including industrial metals, food and beverage, and fire protection. These generators operate by extracting nitrogen from the air, which is then purified to meet the specific purity requirements of different applications. South-Tek’s solutions aim to improve cost-effectiveness and reduce dependency on external nitrogen suppliers, providing significant benefits for end users such as manufacturers, food processors, and fire protection systems. The company serves customers primarily in North America, Europe, and other international markets where high-purity nitrogen is essential for maintaining product quality and operational safety.


South-Tek Systems generates revenue through direct sales of its nitrogen generator systems to businesses operating in various sectors. The company engages in B2B transactions, establishing partnerships with clients who require reliable nitrogen supply solutions. Revenue is derived from the sale of both standard and customized nitrogen generator systems, which include flagship products under the Mission-Critical Nitrogen™ brand. The transaction structure typically involves a one-time purchase for the systems, along with potential ongoing support contracts that provide clients with maintenance and service options, ensuring the generators operate at peak efficiency.


Specific pricing plans for these systems vary based on the customization and capacity required, catering to the diverse needs of their industrial clientele. As part of its growth strategy following the acquisition in November 2018, South-Tek Systems plans to focus on developing innovative new products to enhance their nitrogen solutions portfolio. The company aims to expand its market reach into Europe and Asia by 2023, targeting industries that require high-purity nitrogen. The recent acquisition's capital will be allocated to product development and market expansion efforts, strengthening their competitive position in the nitrogen generator market.


Current Investors

Pfingsten Partners

Primary Industry

Industrial Machinery

Sub Industries

Industrial Machinery

Website

www.southteksystems.com

Verticals

Manufacturing

Company Stage

Mature - Growth Capital

Total Amount Raised

Subscriber access only

South-Tek Systems, LLC - deals

Deals TypeDeal StatusTarget (s)Deal DateInvestor(s)Seller(s)Deal size (Mn)Enterprise value (Mn)Post-money valuation (Mn)EBITDA multiple (x)Revenue multiple (x)Lead partner (s)
Add-onCompletedPatriot Compressor Parts LLC-
GrowthCompletedSouth-Tek Systems, LLC-

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