YB new stock pitches (Fri, May 30)

TriMas Corporation (TRS) is a two-segment firm (packaging and aerospace) with 37-44% upside to $36-38/share via sum-of-the-parts analysis, trading at 11x 2025E EBITDA ($162-167M). The company has undergone a transformation from a three-segment to a two-segment business, divesting cyclical divisions like Arrow Engine for $22M and acquiring GMT Aerospace for €22M. Multiple activists are involved, including Barington Capital (pushing for a sale), Irenic Capital, and Alta Fox Capital, while largest shareholder Shawn Sedaghat (chairman of Trend International with packaging expertise) has been aggressively buying shares to reach approximately 5% ownership. Recent corporate developments signal potential imminent catalysts: CEO and CFO departures, the board acknowledging undervaluation, and retention RSUs granted to packaging executives that accelerate upon change of control. The situation resembles Barnes Group's recent takeout by Apollo at 11x EBITDA, with TRS's packaging business commanding a premium multiple (11x) due to its specialty nature versus commodity packaging, and aerospace valued at 13x based on comparable transactions. Management guides for 4-6% revenue growth and $150-165M EBITDA for FY25, with 1-1.5% margin growth in packaging and 1.5-2% in aerospace.

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Acuren Corporation (TIC) and NV5 Global have announced a merger creating a $2 billion revenue TIC/engineering powerhouse with $350 million in EBITDA and 17.2% margins, expected to expand to 19%+ over time. The combined entity will benefit from immediate synergies ($20 million in cost savings plus cross-selling opportunities), complementary services, expanded geographic reach, and minimal customer overlap. Post-merger leverage will be high at 4.4x EBITDA, but management prioritizes reducing this to 3x, supported by reliable compliance-driven cashflows requiring minimal CapEx (2.7% of revenue). Martin Franklin, who has a strong track record with similar companies like API Group (up 359% in 5 years), is leading this transaction. Upon closing in H2 2025, Acuren shareholders will own 60% and NV5 shareholders 40% of the combined company. The bull case projects 138% upside at 11x EV/EBITDA, while the bear case still offers 27% upside with more conservative assumptions on margins (18.5% vs. 19.5%) and multiple expansion.

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Becker Milk Company Limited (BEK-B.TO) represents a liquidation play with a $23M market cap that buys $32M in commercial buildings (at a 6.5% cap rate), $6M in cash and investments (27% of market cap), and 32,592 ATD.TO shares, all with no debt. The aging founders (over 70, with CEO Geoffrey Pottow at 84+) have been systematically selling properties since 2011, reducing their portfolio from 67 to 38 properties, suggesting continued liquidation of assets. With 30% insider ownership, investors can expect 6-18% returns over 5-6 years as remaining assets are sold, receiving $0.80 annual dividends plus special dividends from property sales and investment income. The company's properties consist mostly of single stores and multi-store plazas in southern Ontario, originally part of a convenience store chain founded in 1957 that grew to 750 stores before being sold to Alimentation Couche-Tard in 2006. The main concern is high administrative expenses of $1.3M, which seem excessive given the identifiable costs of only approximately $735,000.

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