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For Sale

Our client, a state of the art custom manufacturing company, offers a full range of custom design, programming, tooling, machining and fabricating capabilities. Prestige Equipment and Workingman Capital have been retained as exclusive sales agent to find a strategic or investment buyer for this profitable operating company with a strong business and order flow.

The acquisition may be structured to include (2) industrial properties totaling 36,000 Sq. Ft. from which the business operates. This presents a tremendous opportunity to acquire a highly successful operating business with ready-to-go manufacturing capacity.

History

The business was founded in 1981 as a design and consulting firm. Within five years, the company expanded, acquired a facility, and commenced manufacturing custom fixtures and tooling. Currently the company employs 24 persons with an average tenure of 13.5 years. The company has a strong management team and culture in place which is not dependent on the current owner for management of day-to-day operations.

Typical materials machined include steel, stainless steel, aluminum and cast iron. Certifications include Canadian Welding Bureau CSA W47.1 and ISO 9001

Customers

The company enjoys a diverse and loyal customer base including, but not limited to: OEM industrial equipment manufacturers, rail, plastics, mining construction, nuclear, municipal construction, and automotive: fixtures, machining and fabricating.

Over the past 5 years, the top 10 customers have represented on average 65.9% of total sales and have been customers for an average of almost 10 years.  The Company is highly regarded for on time delivery of high quality precision parts, resulting in industry leading customer retention and satisfaction.

Real Estate

The company operates out of two side-by-side manufacturing facilities totalling 36,000 SF of floor space on (2) parcels totalling 2 acres (split approximately evenly). The facilities are strategically located within a 30-minute drive of Toronto’s Pearson International Airport and near Highway 401.

The buildings are zoned M2 (general industrial), and feature 20’ – 26’ clear heights, (10) bridge cranes (up to 20 Ton Capacity), large drive-in doors, heavy power, air compressors and more. The property is owned by a related affiliate of the Company and is available for sale or long term lease in connection with this transaction.

Machinery & Capabilities

The Company includes an in house design department, engineering, large capacity machining, toolroom and quality control, with capability to machine components with a work envelope up to 5 m (16’) x 3 m (10’) and as heavy as 40,000 lbs with tremendous precision (tolerances as tight as 10 microns (.0004”).

Featured assets include (9) late model, large capacity CNC horizontal boring mills, vertical and horizontal machining centers, large format coordinate measuring machine, plant support, rolling stock and more.  The machinery & equipment has been extremely well maintained and updated by OEM and/or third party contractors.

Financial

Three year financials demonstrate average revenue growth of 6.72% (3.5% CAGR). For the four years including draft 2021, without factoring in COVID related government assistance, revenue growth remained positive at 2.15%. Four year historical gross profit average is 27.35%, and adjusted EBIDA margin is 11.49%.

There is a current production backlog exceeding $ 900,000 and the forecast for 2022 remains very optimistic with additional opportunities in the pipeline.

Opportunity

In addition to the customers, real estate, reputation and established market position, the company has on demand production capacity available. The company is currently operating one shift from 7:30 am to 4:00 pm five days a week.

The Company has historically focused on higher margin custom orders, however production orders can easily be added to the manufacturing mix and supplement production capacity. In addition, the company has achieved these results using only word-of-mouth advertising and no dedicated sales personnel.

There is potential to significantly scale revenue and profit by instituting a structured sales process, increasing marketing and advertising and otherwise developing additional sources of revenue.

PROCESS:

Qualified buyers interested in learning more about this opportunity are required to complete a Non Disclosure Agreement that can be downloaded from the following link: Non Disclosure Agreement