Niche Drivetrain OEM Manufacturer for Auto & Heavy Duty Vehicles!

Established over a decade ago, this Company is a respected and profitable supplier of service and low-volume production parts to the Automotive, Off-highway Vehicle, and Heavy-duty Vehicle industries. Although the Company has a wide range of manufacturing experience and capability, it specializes in manufacturing drivetrain and drivetrain related components.

The Company is well known for superior service. GM, Chrysler, Dana, and Eaton Corporation are all long-term customers of the Company and speak highly of the Company’s commitment to excellence. The Company boasts a large fixed asset base with little debt and is financially stable.

There exist many strategic opportunities management can take advantage of to diversify and reach new customers as well as grow the bottom line substantially.

Ownership is ~5 years from retirement age, however, is seeking a strategic buyer or investor to stimulate growth in the business and provide for a transition plan. 

The Company operates out of two owned facilities that are available for sale or lease. Building 1 is a 20,000 sqft facility built in 1980 in good condition. The facility has 1 loading dock, 12-ft ceilings, a fire suppression system and 600 amp power. The 2nd facility is 40,000 sqft, in excellent condition and built in 2000, has 20-ft ceilings, a fire suppression system, 4 loading docks, and 1600 amp service.

Financial Summary

2017 Revenue: $6,945,482

2017 Cash Flow: $711,570

Recent Equipment Appraisal: $3,116,550

 

 

Investment Highlights

Competitive Advantage – The Company has a very broad set of capabilities, which means that it has very few direct competitors. Typically, small manufacturers in this industry focus on either machining, welding or prototyping. The Company differs from most as they can provide complete assemblies and not just one operation.

Great Customer Relationships –One of the most valuable assets that the Company has acquired is its outstanding reputation among its customers. Not only has the Company received accolades and awards for its performance as a supplier, but new business is frequently generated via customer referrals. The Company has never lost a customer.

Heavy Reinvestment in Equipment – An equipment appraisal completed in July of 2018 estimates a fair market value for equipment to be over $3MM with minimal debt. The Company has refrained from using debt to make capital expenditures.

robotic welding manufacturer for sale michigan

The company sports diverse capabilities such as robotic welding and rubber injection molding!

Growth Opportunities

Expand into Defense and Aerospace Industries – Over the past year, the Company has implemented NIST 800-171 Cybersecurity Certification. The Company is now eligible to bid on work for the Defense Industry while many existing suppliers are getting dropped from the approved vendor lists due to their inaction on implementing NIST.

Expand into Oil and Gas Industry – Now that the Oil & Gas market has recovered and new domestic production records are being set, there remains an opportunity for the Company to step into the vacuum created by the collapse of these other companies.

Build Sales Team – Building a sales team would be extremely beneficial not only to acquire new customers and manage current relationships but also to alleviate ownership to pursue other responsibilities and growth opportunities.

 

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 info@caldergr.com 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. Inquire today about this Multi-Location OEM Supplier for sale!

 

Calder Capital, LLC

Click to Call: 616-965-2771

Toll Free: 844-452-4445