Custom Metal Engineering and Manufacturing Company

This opportunity represents a custom metal engineering and manufacturing company that offers a wide variety of products and services, including but not limited to the design and production of rod, wire, and tube formed products servicing the lawn and garden, automotive, industrial, and other industries. The Company has the capabilities of machining, cold heading, threading, welding, forming, coining, and more.  All tooling is designed and built in-house, including single hit and transfer dies, CNC fixtures, multi-slide, and custom automation/dedicated high volume machinery.

The Company was founded over 75 years ago and was purchased by the current Owners in 2012. The Owners are actively involved in the Business; both are on roughly a full-time basis, but they mutually agree that each of their individual roles could be completed in less than 40 hours per week by each of their replacements. One Owner leads the engineering of the Company’s products, and the other Owner oversees all job quoting and purchasing of raw materials. Both Owners are willing to negotiate a solution to train either new Owner(s) or new management.

The Company currently operates out of two facilities, one of which is owned through the Owners’ real estate holding entity while the other is leased by the Company. Both facilities are utilized by the Company for all purposes related to the Business’s operations. Each of the buildings has been recently renovated within the last decade and are structurally and visually well-maintained. The facility owned by the Owners has an estimated real estate value of $1,250,000. Ownership is flexible regarding the sale or lease of the real estate.

Additional Information

June 30, 2021 Inventory: $605,878 (Raw Materials and Work-In-Progress)

Real Estate: One facility is owned through the Owners’ real estate holding entity, while the other facility is leased through a 3rd party. Ownership is flexible to sell or lease the owned facility to the new Owner(s).

Facilities: The Company operates out of two facilities, with the first encompassing approximately 41,880 square feet and the second approximately 12,000 square feet. In total, there are 5,860 square feet of office space, while the remaining 48,020 square feet is utilized as plant space. Both buildings are in good condition from an interior and exterior perspective, as regular maintenance and upkeep have been a priority of the Owners. Each of the buildings contains 480V electrical service throughout to support the Company’s equipment and machinery. The larger facility contains four bay garage doors to fulfill all shipping and receiving activities of the Company.

June 30, 2021 TTM Rent: $204,000

Total Building Size: 53,880 total square feet (owned facility + leased facility)

Seller Financing Available: Yes

Seller Note: Limited Seller-Financing Available for Qualified Buyers.

Number of Employees: 28 employees

Year Established: 1946

Support/Training: Ownership is willing to provide reasonable and customary assistance during the transition period.

Reasons for Selling: Ownership would like to pursue retirement and other business activities.

Investment Highlights

(1) All Operations Completed In-House: The entire process of transforming raw materials to finished products is completed in-house by the Company, including design, engineering, production, and finishing of parts. Keeping these processes in-house rather than outsourcing them allows the Company to be competitive in the marketplace.

(2) Consistent Financial Performance: Over recent historical periods, the Company has routinely recorded steady revenues within the $4.5M to $5.0M range and consistent seller’s discretionary earnings (SDE) margins.

(3) Innovative Techniques and Equipment: As the Company designs and builds all necessary tooling attachments for machinery and equipment in-house, the Company has developed a sustainable competitive advantage as competitors have a hard time matching the Company’s customization and quality control capabilities. Quality is held to the highest standard, as proven by the Company’s defect rate of zero parts per million (PPM) with the Company’s largest customer.

(4) Assurance of On-Time Deliveries: The Company prides itself upon meeting all deadlines associated with customer deliveries, which many competitors are unable or fail to do. Furthermore, the Company has met all deadlines without requiring any expediting of orders.

(5) ISO Certification: The Company’s quality management systems have been assessed by a 3rd party ISO registrar, who has certified that the Business is compliant with ISO 9001:2015 standards. This certification was recently renewed and is valid until late 2024.

Growth Opportunities

(1) Opportunities in New Product Markets: The Company’s current capital, machinery, and equipment are extremely versatile, allowing for the production of nearly any part within any industry desired.

(2) Implementing Second and Third Shift Production Schedules: The Company currently only operates with one production shift. Establishing second and third-shift production schedules could drastically increase the Company’s capacity.

(3) Reshoring of Parts from Oversees: The production of many parts which were previously produced by lower quality, less expensive foreign suppliers is currently returning to the United States. The Company could capture much of this business with the Company’s reputation for unmatched quality at affordable price points.

The BEST way to receive confidential information about this opportunity is to fill out the form below.

Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact [email protected] with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this Custom Metal Engineering and Manufacturing Company for sale!

Financial Performance

  • TTM Jun 2021 Revenue

    $4,464,374

  • TTM Jun 2021 SDE

    $439,878

  • Equipment Value

    $2,017,250

  • Real Estate Value

    $1,250,000





I'm Interested!

Please fill out this form and we will get in touch with you shortly.

 





 



For this opportunity our client is asking for a little background on each buyer before releasing information. Please briefly answer the questions below:

 


 


 


 


For the next questions hold CTRL or SHIFT to multi-select

What industries are you interested in? (select all applicable)

What EBITDA interests you? (select all applicable)

Please designate your affiliation

 




After hitting "Submit" you be redirected to sign our standard confidentiality agreement. Please note, we cannot send additional information until the confidentiality agreement is signed.

 






Receive new business-for-sale notifications instantly!

Subscribe to receive new opportunities!

 
 
For the next two questions hold CTRL or SHIFT to multi-select
 
 

Calder Capital, LLC