PLASTIC COMPONENT FINISHING COMPANY
PLASTIC COMPONENT FINISHING COMPANY
TRANSACTION CLOSED
October 2018
MICHIGAN-BASED AIR FILTRATION EQUIPMENT MANUFACTURER
MICHIGAN-BASED AIR FILTRATION EQUIPMENT MANUFACTURER
This industrial equipment manufacturer in the air filtration sector is a well-established Company that has been thoroughly restructured with new manufacturing technology and management practices. The Company develops, manufactures, markets and sells a line of equipment used in nearly every manufacturing setting. The Company’s product line includes proven manufacturing support equipment with strong brand recognition. Current ownership has completed an overhaul of company marketing, added product lines, boosted engineering capability and installed lean manufacturing processes. Management has been restructured with key personnel to allow hands-off operation by ownership, or to allow a new owner to focus on growth and development of significant untapped potential in the Company.
GROWTH OPPORTUNITIES
Strong and Expanding Product Line – The Company product line has been expanding, including a patent pending product not yet in production. New product and marketing initiatives are already growing sales.
Broad Market Potential – The Company supplies equipment needed by most manufacturing operations, providing an opportunity to grow market share and to participate in current domestic and international manufacturing growth.
Facility Space – The Company’s current facility, available in the purchase, has room to support manufacturing growth for double current sales.
INVESTMENT HIGHLIGHTS
Extensive Sales Network – The Company has a nationwide distribution through an established sales network to both end-user customers and OEM manufacturers who integrate Company parts in their own products.
Strong Market Identity – The Company sets itself apart from larger, global competitors with quality products and proven designs, competitive pricing and a service-oriented approach to meet individual customer needs.
2017 Revenue: $4,200,000
2017 Adjusted EBITDA: $590,000
3 Year Average Adjusted EBITDA: $675,000
WEST MICHIGAN-BASED PLASTIC INJECTION MOLD & DIE COMPANY
WEST MICHIGAN-BASED PLASTIC INJECTION MOLD & DIE COMPANY
This well-established precision plastic injection mold and die company offers a wide range of services, including mold design and build, as well as prototype, tryout, repair and revision work. The Company also provides short-run production and prototype parts injection molding, as well as part sampling. The Company also has a diverse product line and customer base, both nationally and internationally. The majority owner is looking to exit, but will stay during a transition period. The Company is well-positioned for a buyer looking to operate and grow a thriving business, or for a similar business to add capacity or expand in a new market with established accounts, skilled employees and quality equipment and facilities.
GROWTH OPPORTUNITIES
Emphasis on Sales and Marketing – The Company currently relies on word of mouth for sales. With investment in sales staff, it could broaden its customer base, with particular opportunities in new product areas it has already developed, such as lens and foam molding, and potential lines such as 3D printing.
Facilities to Available for Growth – Manufacturing operations are currently at about 75 percent of facility and equipment capacity, providing room for growth with addition of new staffing.
INVESTMENT HIGHLIGHTS
Extensive In-House Expertise – The Company’s highly skilled employees have many years of experience and diverse abilities, including complete in-house engineering services offering reverse engineering, part & tool inspection, tool verification, and detailing. This ISO 9001 certified company operates with the latest technology, equipment and tooling as well as precision measuring to ensure quality.
Diversified Customer Base – The Company serves diverse markets with product lines including medical, automotive, home appliances, and home and office furniture. The Company’s top customer provides less than 30 percent of its annual revenues; its top three customers combine for approximately 50 percent of annual sales
3 Year Average Revenue: $5,375,000
3 Year Average EBITDA: $600,000
INDIANA-BASED ASSEMBLY AND AUTOMATION EQUIPMENT MANUFACTURER (NVC2186)
INDIANA-BASED ASSEMBLY AND AUTOMATION EQUIPMENT MANUFACTURER
This Indiana Company designs and builds high-end automation, assembly and test systems, including robotics, primarily serving automotive manufacturers. With a focus on continually developing skilled employees and applying the latest technology, the Company has seen rapid sales growth in the past several years. A history of quality service and support has developed long-standing relationships with key customers. Moving into complete lines and advanced assembly systems has positioned the Company for continued growth opportunities for new owners. The Company has a strong management team, and its current owner is willing to remain in a transition role for several years. Current backlog as of 10/19/19 is $9,500,000.
GROWTH OPPORTUNITIES
Expanding Markets – The Company’s transition to higher level automation and assembly systems provides on-going opportunities to reach new customers outside its current core market.
Fine-Tune Company Operations – Refining processes to increase efficiency and productivity along with a stronger supply base to control costs offer the potential for improved margins as the Company expands sales.
Grow Software Services – Continual expansion of its software development operations would enable the Company to grow their market of automation and assembly systems and integration to manufacturing customers.
INVESTMENT HIGHLIGHTS
Well-Established Record of Quality – The Company has a long history of skilled work and use of cutting edge technology, an approach that has positioned it as a high-level assembly system and automation integrator. It has preferred status with leading customers.
Outstanding Culture – The Company culture empowers employees to apply individual, creative thinking, rewards success and fosters a hard-working attitude. This results in a high level of service and support that
2019 Forecast Revenue: $11,500,000
2019 Forecast EBITDA: $2,500,000
2019 Forecast EBITDA: $2,500,000
MICHIGAN-BASED SPECIALIZED DIE COMPANY
MICHIGAN-BASED SPECIALIZED DIE COMPANY
This Company is an industry leader in highly specialized die manufacturing. Putting to use the latest technology, the Company has developed a diverse market of manufacturers that require precision, durable dies. Expertise in production solutions and a willingness to meet manufacturers’ unique needs have generated a large customer base and excellent cash flow. As a leader in an industry trend that gives manufacturers better quality and more efficiency, this Company is well positioned for growth with an experienced workforce, excellent equipment and a modern facility. The owners are involved in day-to-day operations and have built this Company for more than three decades. They believe it is ready for continued success under new owners as they move on to the next phase of their lives.
GROWTH OPPORTUNITIES
Industry Innovation Leader – The Company’s ability to help customers develop unique manufacturing solutions has won over customers from some of the largest players in the industry.
New Market Potential – Expanded marketing efforts can reach new customers as more manufacturing sectors embrace the advanced technology supported by this Company.
Quality Equipment and Facilities – State-of-the-art equipment has been regularly updated in a modern plant that includes a recent expansion providing for an additional 50 percent production capacity.
INVESTMENT HIGHLIGHTS
Expertise in Production – The Company is known for high quality products supported by knowledgeable technical support. It has achieved top-level ISO certifications.
Highly Qualified Staffing – A well-trained, experienced workforce is led by managers committed to excellence.
Diverse Customer Base – The Company has a large, loyal customer base that is spread over multiple and diverse consumer product market sectors.
*** UNDER LOI ***
2016 Revenue: $5,900,000
2017 Projected Revenue: $6,200,000
2016 Adjusted EBITDA: $878,700
2017 Projected Adjusted EBITDA: $1,101,400
MICHIGAN-BASED LUMBER AND HOME IMPROVEMENT COMPANY
MICHIGAN-BASED LUMBER AND HOME IMPROVEMENT COMPANY
Founded decades ago, our client is a full service lumber company with multiple locations. They specialize in a number of services, including engineered wood products, home design services, specialty mill-work, and post frame building packages. There are separate divisions dedicated to contractor needs and home design planning services, also a showroom providing flooring, cabinetry and counter tops.
Their customer-centric philosophy continues to fuel growth and loyalty from the large customer base, reaching Michigan, Indiana, Ohio, Illinois, and other states. This friendly and knowledgeable staff has allowed them to continue growing during the infiltration of the national “Big Box” chains
GROWTH OPPORTUNITIES
Strong Local Economy – Unemployment in the Company’s market area is among the lowest in the state, while wages continue to increase and interest rates remain near record lows. Both residential and commercial construction are projected to continue to grow. With proper investment in marketing, growth of sales should follow growth in the local economy.
INVESTMENT HIGHLIGHTS
Community Institution – This Company has been developing its brand in its home market for over half a century, emphasizing good prices and local customer service. The Company has a customer list of approximately 4,000 accounts, including a high rate of repeat customers.
Strong Workforce – The Company has approximately 100 employees with average tenure of more than 15 years, including talented key employees who have received awards for interior and home design. These employees bring a strong base of community knowledge and history with customers.
Recent History of Sales Growth – Since coming out of the recession, the Company has seen five years of steady sales growth, with sales nearly doubling from 2010 to 2015.
2016 Revenue: $46,100,000
2016 Adjusted EBITDA: $2,190,000
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