Provider of off-line x-ray inspection services that detects foreign-body contaminants in food products


Arlington, TX


Consumer services

Investment Type

Senior Sub Debt & Warrant


$11 million


Acquired by Levin Leichtman Capital

Transaction Dynamics

  • The sponsor raised a significant amount of equity; however, banks were not willing to provide much leverage due to the size and lack of infrastructure.
  • Our capital (1) provided more flexible debt than a traditional senior lender, (2) was less expensive than equity, and (3) solved their capital needs to close the transaction.

Investment Thesis

  • Underserved Market – market study found that 50% of the potential market does not outsource x-ray services to 3rd parties but would be willing to when the situation arises
  • Long-term, Blue-chip Customers – customers are some of the largest food manufacturers in the world
  • Strong CEO – Recruited CEO prior to investment who had applicable experience leading small and large organizations

Post-Closing Initiatives

  • Expanded Management Team – recruited new Controller, COO, Business Development, Food Safety
  • More than Doubled Capacity – expanded facility and added machinery
  • Develop Sales & Marketing Plan – educated market on FlexXray’s services

“In 2015, we were in the process of acquiring a company that had tremendous upside but was relatively small and lacked infrastructure.  As a result, banks were not willing to provide much leverage.  Jay and Kevin developed a one-stop debt solution that was more flexible than bank debt but less expensive than equity.  Ultimately, the investment was very successful, and their capital was instrumental in closing the transaction in a timely manner.”

Ron Duncan, Managing Partner of Barton Creek Equity Partners