Friday, April 8, 2016

Halitron, Inc. (HAON) and the Integrated Business Model

Halitron, Inc. (OTC: HAON) is a Connecticut-based equity investment holding company with a second location in California. Founded in 2003 and formerly operating as Teknik Digital Arts (a digital video gaming trademark and license business), the company took on the name Halitron, Inc. in August 2014.

Today, Halitron operates under an acquisition roll-up business model that targets two types of acquisitions. On the one hand, the company focuses on acquiring profitable companies at a multiples of EBITDA ranging from two to four times. For Halitron, it is important that these companies have a strategic fit operationally, i.e., that their products and/or services benefit the collective group of businesses. On the other hand, Halitron also focuses on acquiring bankrupt, distressed or insolvent companies at inexpensive prices and “rolling” their assets into its infrastructure. Once acquired, the collective group of companies leverage the low-cost and well-organized infrastructure that Halitron already has in place.

Along with Teknik Digital Arts, Halitron’s portfolio of active holdings includes:

ArchivalPhotoPages.com, an online merchant of archival scrapbooking supplies;
ArchivalMuseumSupplies.com, an online merchant of archival museum supplies;
PiecesinPlaces.com, an online merchant of office organization products;
Newtown Digital Group (NDG Holdings, Inc.), a digital marketing services company; and
PRD Holdings, Inc., a manufacturing asset based in Mexico
Upon acquiring NDG Holdings, Inc., Halitron also obtained the base infrastructure for future acquisitions of sales, marketing and manufacturing companies. The company now has two bases: the location in Newtown, Connecticut, houses the company’s sales, marketing and finance divisions, while the location in San Diego, California, serves as the distribution point for products primarily made in and around Tijuana, Mexico.

Up to now, NDG Holdings has been a service-oriented company that provides digital marketing services, e.g. website development, email blasts, search engine optimization and pay-per-click management. Over time, Halitron’s management expects to leverage NDG’s infrastructure and talent in order to become more vertically integrated. By acquiring sales-, marketing- and manufacturing-based businesses which will improve its gross margins, Halitron’s management also means to gain the flexibility to compete more effectively and to invest more in the business.

For more information, visit www.halitroninc.com

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