***COVID-19 Impact Statement: In business for nearly 70 years, the Company has weathered numerous regional economic downturns, the transformation of entire manufacturing industries and processes, and is clearly here to stay. The Company’s longevity has been achieved by focusing intensely on the needs of the customer and maintaining a high level of professionalism. While it is difficult to predict the impact of COVID-19, the owners are confident in a V-shaped recovery. The Company remains operational; however, two employees have been laid off, and sales have declined by approximately 30%. Ownership has applied for the PPP Loan/Grant and is in active and positive communication with their bank.***
The profitable and well-established machine shop offers milling, turning, fabrication, welding and roll grinding services to customers in the surrounding region and beyond. Additionally, the Company sells its own patented roll hardness testing meters primarily to large paper manufacturers. The product is widely regarded as the top-of-the-line industry solution, and certain customers use it exclusively to test their own products, prior to shipping. These products represent a significant growth opportunity as word of their existence has only traveled via word-of-mouth.
Ownership has put in place a seasoned General Manager and systems to remove themselves from the Company’s day-to-day operations and monitor performance remotely. Both owners reside out of state and one owner visits the Business only a few times per year.
The Company’s customer base is well-diversified, with long-term relationship customers.
Ownership would like to sell to transition to retirement. The real estate is available for sale as part of the transaction.
Investment Highlights
Multiple Revenue Streams – The Company’s revenue is well balanced between paper manufacturers, non-paper customers and the sale of its proprietary roll hardness testers.
Not Owner Dependent – Ownership is not involved in the day-to-day operations, and in fact, visits only a few times per year. Ownership has the systems in place to allow the machine shop side of the business to function smoothly with minimal monitoring by the owner. Ownership oversees the hardness testing meter side of the Business;Â with minimal training, new ownership could manage this segment from any location. The workforce is extremely capable and committed, and many have been with the Company for a considerable time.
- The Company manufactures and distributes its own proprietary testing meter. Huge opportunity for growth! (Note: stock photo. Not actual testing meter.)
Growth Opportunities
Actively Market and Promote Patented Product – Although the Company’s proprietary, patented roll hardness tester is the only one on the market, sales have been generated entirely by word-of-mouth. Actively marketing these products is a huge growth opportunity.
Further Diversification of Customers – The Company could enter parallel niches and continue to branch out its end markets.
Sales/Marketing – Overall, the Company does not engage in any sales or marketing efforts, which reflects the owners’ conservative approach to growth. Ample opportunity remains for a growth-focused owner.
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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 us at info@caldergr.com with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few brief questions. Enquire today about this profitable proprietary product machine shop for sale!