The ratings on Thomasville, Ga.-based Cleaver-Brooks Inc. reflect its leading position in the niche market for mid-to-large commercial and industrial boilers. It has a strong distribution network consisting of exclusive sales representatives and has a well-known brand name and reputation. However, its position in a highly fragmented and competitive industry, and its highly leveraged financial risk profile resulting from the refinancing, which includes a dividend to its sponsor, largely offset company strengths. Primarily based in the U.S., with about 80% domestic sales, Cleaver-Brooks is a sole manufacturer of integrated boiler, burner, and control solutions, and provides a full product offering. It has a large installed base of 60,000 units, which affords an opportunity for replacement and aftermarket parts and services.
