Building Supplies Distributor
Cash Flow: | $1,505,000 |
EBITDA: | $930,000 |
Gross Revenue: | $17,500,000 |
The Seller is seeking industry buyers with a strategic fit. The Company is a wholesale and retail distribution company supplying reinforcing steel and GFRP (fiberglass rebar) and construction supplies to dealers, specialty stores, and contractors. The primary product line includes rebar, wire mesh, rigid insulation, concrete supplies and power equipment, and fiberglass reinforced polymer rebar. The majority revenue is generated from concrete construction firms, building supply and specialty stores, and local contractors throughout Alberta. The Company operates from an 11,500 square-foot office and warehouse located near several highways for ease of access.
Superior Name and Reputation — The Company enjoys a long-standing (40+ years) reputation for the quality of its products and services, expertise, dependability, and superior customer support. As a result, 90% of revenue is from repeat business every year.
Large Customer Base — The Company’s active accounts number 335, with no significant customer concentration. In each of the last three years, the largest customer represented between 12% - 15% of total sales.
Strong Client Relationships — The Company has deep client relationships. The top five clients have been working with the Company from a minimum of 6 years to a high of 41 years.
Favorable Vendor Relationships — Long-standing vendor relationships, as well as volume and purchasing power, enable the Company to negotiate preferential pricing over many of its competitors. This in turn allows the Company to offer more competitive prices and still maintain high margins.