The Company is a specialized sheet metal fabricator focusing on the manufacturing and installation of cutting-edge pneumatic scrap conveying systems, dust collection systems, industrial ventilation systems, and vacuum transfer dust filtration systems. The Company’s customer base mainly consists of corrugated box manufacturers, printing companies, folding carton manufacturers, aerospace companies, waste/recycling entities, food production companies, and a variety of other businesses
Investment Highlights:
Management estimates 80%-90% of the Company’s products are built in-house, with the remaining 10%- 20% pre-manufactured externally with more cost-effective suppliers.
• The Company has developed a customer base of over 400 accounts operating in the Company’s geographic region. As a result of repeated exceptional service, the average customer relationship has existed for over 10 years.
• Long-standing (46+ years) reputation for its focus on engineering and design excellence, quality sheet metal fabrication, and dependable system installations, offering reliable expertise, and providing superior customer support.
• The Company’s expansive expertise forms a tapestry of solutions, each thread woven with innovation, precision, and a commitment to bettering the industries it serves.
• Key suppliers play a pivotal role in the Company’s success and efficiency of the business operation. These are strategic partners whose reliability, quality, and timely delivery directly impact a company’s ability to meet customer demands and maintain competitiveness.
• 15,000 square foot office and shop stands as a cornerstone of efficiency and functionality within the local business landscape.
• Untapped potential for growth into areas related to core business, monthly subscription programs, and adjacent installation opportunities.
Income & Adjusted EBITDA:
In 2023 revenue was $4.8 mm and adjusted EBITDA of $1.75 mm which represents a 36% margin. In 2024, revenue is projected at $5.0 mm driven by strategic initiatives aimed at expanding the customer base and enhancing market penetration. The company has historically been profitable and each year since 2021 has had adjusted EBITDA of more than $1.4 mm. The gross profit of the company grew by nearly 10% per year in 2022 and 2023. A significant increase in orders and backlog as of 6/30/24 has positioned the company to experience similar growth in the full year 2024.
Transaction Consideration:
A sale price for The Company has not been established. Parties interested in pursuing this transaction will be required to submit a non-binding proposal detailing the preliminary valuation of the company. This is an opportunity to acquire a company that is a major player and has a significant market share in material handling. The Company has a strong competitive position, loyal customer base, diversification and growth opportunities, with a growing market share. Consequently, the transaction deserves pricing consideration reflecting these merits.
