Anania and Associates - Investing in Small Businesses

Traktec LLC, acquired in September 2011, is a manufacturer of premium pressure sensitive labels based in Portland, Maine. Traktec is a leading provider of premium pressure sensitive labels for wholesale, retail and consumer based applications. The company was founded by Michael Caron, an expert in paper coatings, production and printing technology, who started his career with S.D. Warren paper. Mike’s knowledge of the coatings side of the business and understanding of some breakthrough technology forms the basis for the new platform company. Traktec is in trials with a Fortune 500 company, which should result in a five year contract for upwards of $10.0 million per year. The company is also helping another company with a nationwide footprint to set up a 20 person national sales team selling these premium pressure sensitive labels. The advanced technology should give the company an edge toward consolidation in the industry which is somewhat fragmented. AAI provides strong financial and administrative support to the companies it invests in knowing the results will be a strong team focused on growth for the company. TrakTec plans to invest significant capital in a new state of the art, all in one, printing press/coating/finishing line which will provide higher gross profit margins to the Traktec products. This new technology will also allow Traktec to compete in niche product areas which were previously cost prohibitive.