Power, Industrial, and Pre-Engineered Building Contractor

Prospect, KY
Asking Price:$1,750,000
FF&E:$200,000
Gross Revenue:$4,701,452
Established Year:2016
BUSINESS DESCRIPTION

Established General Contractor with Experienced Management and Craft

Capstone Equipment LLC, is a WBE & WOSB certified business, founded in Kentucky in 2016 as an engineering and fabrication firm to serve our power and industrial customer base. The engineering segment of our business is relatively small, and utilized as a tool to secure turnkey contracts. Our fabrication needs were satisfied by subcontracting the fabrication of products to our Mexico legal entity, Capstone Equipment Mexico, and purchasing the balance of items required from other qualified suppliers.

Starting in May 2021 our customers requested that Capstone begin offering the direct hire installation of the items Capstone supplied, which quickly expanded to installing equipment free-issued by our customer. In mid-2023 the Capstone Equipment LLC management team made a strategic decision to divest of our Mexico manufacturing business to focus all of our resources on the construction market. On December 31, 2023, Capstone Equipment Mexico was sold. Capstone Equipment LLC now subcontracts our ongoing demand for fabrications to Capstone Equipment Mexico or other qualified subcontractors if not suitable for Capstone Equipment Mexico.

It was forecast that when Capstone Equipment Mexico was divested, Capstone Equipment LLC's cashflow would became very seasonal as our power plant customers schedule their site work in the Spring and Fall of each year when electricity demand is at its lowest level.
Capstone Equipment LLC management made the decision to enter the pre-engineered metal building supply and erection business in order to smooth our cashflow. This customer base, which includes agriculture, aviation, maufacturing, warehouse & distribution, logistics, municipal, office, etc. customers, produces strong demand for new structures year-round. These buildings are primarily designed and supplied by Varco Pruden Buildings, and on certain occasions several other proven metal building suppliers. If requested, Capstone Equipment LLC then erects the bolt/screw together buildings on our customer’s site. If our customer requests a total turnkey installation, then Capstone Equipment LLC subcontracts the design and installation of any foundation, plumbing, electrical, and mechanical work to qualified subcontractors. As an Authorized Builder for Varco Pruden Capstone Equipment LLC has access to their highly skilled design department and receives a significant discount on the purchase price of Varco Pruden building kits.

Capstone Equipment LLC is registered to do business, and holds General Contractors' licenses in a number of U.S. states. Our current focus is to continue to expand our power plant and industrial business, while raising our PEMB business out of the infancy stage.

Capstone Equipment LLC's primary market is east of the 100 Degree longitude line, though we do pursue work west of this line if we feel the project aligns well with our capabilities. Our crews will travel throughout the U.S.A.

Primary Markets:
1. GT power plant inlet filter media replacement
2.GT power plant inlet and exhaust system, acoustic silencers, stack and ductwork replacement
3. ASME Code piping, boiler, and pressure vessel inspection and repair (Capstone Equipment Mexico is the ASME Code Certificate Holder)
4. PEMB building design, erection, and/or turnkey construction

Our management team works from their respective homes in Kentucky and South Carolina since closing our office during Covid at the end of 2020. The headquarters of this company may be relocated from Kentucky without any disruption in business.Capstone Equipment LLC has not typically served the Kentucky market.

2022 Sales - $4,479,426 (Mexico Fab $1,826,977)
2023 Sales - $6,661,466 (Mexico Fab $1,735,996)
2024 Sales YTD - $1,472,340

2024 Sales have been light due to our efforts to enter the PEMB market and weak Fall demand due to the election. Shaping up to be a strong Winter and Spring. Priced at current Sales level, asking price will be adjusted as backlog and sales return to normal levels.


ATTACHED DOCUMENTS
Capstone Field Services Capabilties Presentation - May 29 2024 .pdf.pdf Download
Capstone AIFH Media Replacement & Refurbishment Capabilties Presentation May 29 2024 .pdf.pdf Download
Capstone Steel Structures Capabilties Presentation - July 23 2024.pdf.pdf Download

DETAILED INFORMATION
Location
Relocatable
Inventory
Not Included in asking price
Employees
4
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
Capstone Equipment LLC leased a 1,600 SF office from our sister company Capstone Asset Management LLC until 2021. During Covid all team members worked from home without disruption to the business, so we did not renew our lease at the end of 2020. The CEO and President works from their home in Kentucky, and the two Vice Presidents work from their homes in South Carolina.
Competition
Market #1 - GT Power Plant Inlet Media Replacement: Growth potential very strong with limited competition. Market #2 - GT power plant inlet and exhaust system, acoustic silencers, stack and ductwork replacement: Growth potential is strong with competent regional competition. 3. ASME Code piping, boiler, and pressure vessel inspection and repair: Growth potential is average with limited competition due to certification requirements. 4. PEMB design, erection, and/or turnkey construction: Growth potential is strong with little turnkey competition.
Growth & Expansion
Growth opportunities with limited competition in the GT Power Plant Inlet Media Replacement and PEMB markets. We are subcontractors to the 2 major media OEM's for installing their media. Capstone is growing with them, as well as by pursing direct sales to power plant operators. We are in the infamcy stage of grwoing the PEMB business. Limited competitors offering supply and erection to GC's. Strong aviation hangar boom in-progress. Many municipal opportunities, most require bonding. Capstone bonding capacity is $1m/$1.2m per project, aggregate.
Financing
Partial Seller financing (25%) available for qualified buyers
Support & Training
CEO & President are open to remining active for up to 6+/- months for training, information transfer, and to facilitate transfer of the General Contractors Licenses. VP of Construction is qualified for transfer of General Contractors Licenses. Both VP's are highly qualified to continue the operations.
Reason for Selling
President would ike to retire in the near future. Currently 66 years old and wou

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Stephen Kapsalis
Stephen Kapsalis