Profitable Natural Gas Pipeline Products Distribution Company

This Company is a manufacturers’ representative and distributor of OEM and non-OEM after-market replacement parts for the natural gas pipeline industry.

With literally tens of thousands of consumers relying on this infrastructure, utilities and pipeline owners need reliable vendors that can be trusted completely to supply quality replacements parts on a short timeframe. For this reason, natural gas stations throughout Michigan and Indiana have been choosing this Company for 25 years to supply them with replacement parts critical for this infrastructure.

The founder and owner of this Company has invested decades in building out a far-reaching network of industry leading manufacturers that supply the parts that keep the lights on and homes warm throughout these two states. Being at the nexus of manufacturers and pipeline companies has proven to be very lucrative. The Company averages an EBITDA margin of nearly 20% of sales.

Ownership is nearing retirement age and is seeking to transition the business to the next generation of ownership. The office is home-based and therefore no real estate is involved.

Financial Summary

TTM 8/31/2018 Revenue: $1,308,689

TTM 8/31/2018 Cash Flow: $483,746

 

 

Investment Highlights

Consumable Products – This is a repeat sale business. The Company supplies wearable and moveable parts to the gas pipeline industry, so demand is steady with the occasional spikes from major capital equipment rebuilds.

Approved Vendor Security – The Company is an approved vendor to three major natural gas companies in Michigan and Indiana. These companies have strict criteria for selecting vendors and cannot take undue risks relying on upstarts or fly-by-night operations. The Company is integrated into its top customers’ SAP systems and has been working with them for decades.

Unique Value Proposition – Customers appreciate the broad selection of products that the Company can provide them with. Instead of working with 10 different vendors, they can save time and money going to this Company for nearly all their consumable parts needs.

Limited Overhead –The owner of this Company has run the business out of his home since its inception with nothing more than a home office, garage, work vehicle and a couple of computers.

 

Growth Opportunities

Market Outlook – This Company is well positioned to grow along with the natural gas market. According to EIA’s Annual Energy Outlook 2018, U.S. dry natural gas production will increase through 2050 across a wide variety of alternative assumptions about the future. This supply will be supported by growing demand in an environment of low and stable natural gas prices in both domestic and international markets.

Expand Sales Efforts – There are no restrictions on the territory that the Company can serve. Illinois and Ohio may prove to be lucrative markets worth expanding into. Illinois has a major artery of pipelines carrying natural gas from the Gulf of Mexico up into the Northern United States and Canada. New pipelines and pipeline stations are currently being built in Ohio to move shale gas out of New York to the rest of the country.

Marketing Strategy – Although the Company does have a limited web presence, it does virtually zero marketing. Investing in internet marketing, brand development, and a customer relationship management system would all be excellent means of growing the Company’s market share.

 

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 profitable NG pipeline products distribution company for sale!

Calder Capital, LLC

Click to Call: 616-965-2771

Toll Free: 844-452-4445