Industrial Equipment Manufacturing & Machining Company for Sale

Asking Price:$2,500,000
Gross Revenue:$3,500,000
Rent:$32,000/Month
FF&E:$1,000,000
Cash Flow:$600,000
Inventory:$250,000
EBITDA:$500,000
Established Year:1982
BUSINESS DESCRIPTION

Material Handling Equipment Manufacturing & Contract Machining

The Company is a privately held firm located in the Southeast United States which has been in continuous operation and existence since March of 1982. Specializing in design and manufacturing of equipment in the industrial sector since its inception, including Automated Material Handling and Packaging equipment, the Company enjoys solid brand equity from its 40+ years in business.

The Company has retained an experienced workforce, sustaining solid customer and vendor relationships, maintaining deep industry expertise, and diligently managed its facility, inventory and equipment. Customer retention is strong and over the past four years 84% of Company revenue came from customers who had been with the Company for three years or more. The Company’s financial position is further strengthened by its diverse customer base.

The Company has developed design and manufacturing processes and procedures over the past 40 years which allow it to build to stock, build to order or engineer to order a broad range of automated Material Handling and Packaging equipment and systems that have been sold to Fortune 500 customers around the world. The Company has documented each step of its operational processes in detail including work order review, bidding, specs and drawings, project planning, materials including part numbers, estimation and project flow. The Company maintains over 25,000 items in its parts database, including manufacturing process routings, work orders and project specifications from its entire history.

Leveraging the extensive knowledge gained during development of its Material Handling and Packaging products lines, the Company has refined the methodologies needed to also offer fabrication and design-for-manufacturing services, including build-to-print machine fabrication. With the data foundation of an extensive and robust ERP system, these methodologies have been developed to create cost effective processes and procedures that utilize the most modern manufacturing technologies, driving down both labor and material costs.

The Company is headquartered in a 41,000 square foot building which contains fabrication, machining, finishing and assembly production areas as well as material and parts warehousing, office space, 23’ to 32’ clear heights, one dock door and two drive-in doors. The facilities are situated in a large metropolitan area on a 4.5-acre site zoned for heavy industrial use with convenient access to a major airport and easy access to an interstate highway. The facility is designed to maximize operational efficiency, store and maintain equipment, inventory and supplies and provide adequate space for office operations of the Company’s businesses. The Company also owns and maintains over 200 pieces of machinery, equipment, vehicles and fixtures for use in its operations, valued at approximately $1 million dollars on a fair market value basis.

This recapitalization presents investors with the ability to participate in:

1. Excellent Brand Equity
2. Growing Customer Relationships with 84% retention
3. Strong Value Proposition to Customers
4. Detailed linked database of over 35,000 unique parts from over 350 OEM and non-proprietary manufacturers
5. Documentation of over 700 projects and Customer Specifications
6. 120 Years of Collective Industry Expertise
7. Substantial Tangible Asset Value in Facilities
8. Attractive Long-Term Business Development Opportunities
9. 40 Years of Stable Cash Flow and Steady Growth

Note: 2023 financials will be available soon. Please inquire.


DETAILED INFORMATION
Inventory
Included in asking price
Real Estate
Leased
Building SF
40,700
Employees
30
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
The Company is headquartered in a 41,000 square foot building which contains a production machine shop, fabrication department, blasting/paint booth finishing area, assembly bays, parts warehousing, office space, 23’ to 32’ clear heights, one dock door and two drive-in doors. The facilities are situated in a large metropolitan area on a 4.5-acre site zoned for heavy industrial use with convenient access to a major airport and easy access to an interstate highway.
Competition
Investment in industrial equipment and machinery is expected to rebound over the next 5 years at an annualized rate of 6.7%. Industry revenue is expected to rise at an annualized rate of 3.4% to $29.2 billion. As commodity prices experience more consistent growth, associated industries are forecast to increase capital spending on equipment. If Company growth continues to pace higher than average, forecast revenues could reach $6 million by 2027.
Growth & Expansion
The Company should be able to take advantage of a substantial number of new business development activities, increasing revenues up to $6 million per year while also increasing profitability. Each opportunity is in alignment with the Company’s core capabilities. These opportunities include: Increase direct-to-industry sales by recruiting direct sales personnel; Boost marketing via website; Expand the build-to-order machinery line of business; Recruit industry-specific manufacturing representatives to increase sales in key verticals.
Financing
The owners are willing to sell or lease the facility with a sale of the business
Support & Training
The current owners are willing to stay on and provide a smooth transition to new management. The Company's product database and documentation of all processes, procedures and inventory management will ease owner transition.
Reason for Selling
After decades of managing the Company, the owners are seeking a full sale.
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