Upsize Growth Challenge: Spray Control Systems

UPSIZE GROWTH CHALLENGE : SPRAY CONTROL SYSTEMS 

Flush with cash, trucking accessories company hunts for acquisition

by Beth Ewen

The trucking industry is down 40 percent, buffeted by rising fuel prices, says Craig Kruckeberg, CEO of Spray Control Systems Inc. in Blooming Prairie and winner of the Upsize Growth Challenge in 2006.

That’s an opportunity for his firm, which makes accessories for the big rigs, such as flaps to control spray from the tires. We don’t have debt. We’re lucky to have a good balance sheet, Kruckeberg says.

We’ve been buckled down for the last 90 days, looking for acquisitions, Kruckeberg says. There’s a lot of mom-and-pops in our business. Mom’s getting nervous so Pop’s gotta sell.

We have five companies we’d like to acquire, some in our market and some similar to our market, Kruckeberg says, adding he’d like to complete a transaction by the first quarter of next year. He  wants to put in a president who will run the day-to-day operation and eventually oversee the acquisitions as well.

He says he plans to fund the first purchase with cash, but may add debt financing or bring on investors for subsequent moves. He may tap contacts he’s made through EO, Entrepreneurs’ Organization, to raise money. There’s money available. It’s just not advertised, Kruckeberg says.

I’m scared to death, Kruckeberg says about the buying spree. I’m freaked out about it. Still, he is enjoying his role. My job is to shake hands, make the buyer comfortable, and there’s people who get paid to worry.? He mentions his attorney at Gray Plant Mooty in Minneapolis and his accountant at EideBailly in Bloomington.

Craig Kruckeberg, Spray Control Systems Inc.: 800.248.3855; craig@minimizer.com; www.minimizer.com