ILLINOIS PLASTICS MANUFACTURER ACQUIRED BY STRATEGIC BUYER

by | Nov 1, 2023 | Completed, Home Feature, Manufacturing

ILLINOIS PLASTICS MANUFACTURER ACQUIRED BY STRATEGIC BUYER

NuVescor Group is pleased to announce the successful sale of an Illinois plastics manufacturer to an established company in the same industry.

The plastics manufacturer which has been purchased is both a contract manufacturer and custom injection-molding company that produces plastic components for longtime, repeat customers in industries including automotive and fitness. The company had revenues of $15MM in 2022.

The strategic buyer offers plastic injection molding, product development, engineering, assembly, tooling management and development, and product development assistance. The buyer saw the value in the extensive customer list as well as the equipment that would provide synergistic growth opportunities. The Company utilizes both electric and hydraulic horizontal presses as well as vertical and rotary platen presses for custom molding and insert molding.

NuVescor Group assisted in the sale of the business, bringing a buyer with a strong fit looking to grow through acquisition.

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MIDWEST METAL FABRICATION COMPANY

by | Oct 18, 2023 | Active, Manufacturing

MIDWEST METAL

FABRICATION COMPANY

This Midwest metal fabrication shop focuses on laser cutting, forming, and welding, along with the design and build of custom products for a niche market. Its customer base is diversified over many industries including automotive, office furniture, automation, outdoor architecture, restaurant furniture, marine, and landscaping. The Company primarily focuses on smaller runs and quick turnarounds but has the ability to
mix in production orders with the many automation innovations it has installed. The Company’s reputation for quality and fast, reliable service has attracted an impressive, loyal customer base. Its skilled, dedicated workforce and broad range of capabilities allow the Company to maintain high-quality standards and operate efficiently.

GROWTH OPPORTUNITIES

Modern, spacious building – Recently expanded facility provides plenty of room for growth – as much as twice the current output. Continued increases in volume through the facility will translate quickly into increased cash flow.

Dynamic regional economy – Its service region is full of great companies constantly developing new products that require the Company’s services, and the region continues to attract new manufacturers.

New capabilities – New, state-of-the-art equipment added in 2022 will help build the customer base.

Attraction, retention – In a challenging hiring environment, the Company has successfully added the next generation of employees to its workforce through employee referrals.

INVESTMENT HIGHLIGHTS

Diverse customers – The Company serves many industries, including automotive, office furniture, automation, outdoor architecture, restaurant furniture, marine, and landscaping.

Automation and wide range of services – Efficiencies provided by the Company’s many automated and simplified/focused operations give it a significant advantage against competitors in all aspects of laser/fabrication work.

Lean, capable team – The owner has built a solid, lean team of employees, many having long-term tenure with the Company.

Premium pricing – Its high-quality work and quick turnarounds allow the Company to charge premium prices for its services.

Resiliency – The Company has succeeded even through the 2008-09 recession and the COVID pandemic – a testament to its strong employee culture and solid customer base

 

2022 Revenue: $12,290,000

2022 EBITDA: $3,350,000

2023 Forecasted Revenue: $12,000,000

2023 Forecasted EBITDA: $4,000,000 

Contact:

NuVescor Group

(616) 379-4047 Ext: 106

Non-Disclosure Agreement

DST CONTROLS ACQUIRED BY CKC AUTOMATION

by | Aug 11, 2023 | Completed, Manufacturing, Sell Side Feature

DST CONTROLS MERGES WITH CKC AUTOMATION, ACQUIRED BY DEPATIE FLUID POWER

Two California automation firms merge, DST Controls Inc. and CKC Engineering LLC, which in turn have been purchased by the Michigan-based Depatie Fluid Power Group. DST Controls, based in the San Francisco Bay Area of California, has provided a broad array of automation and industrial controls services to a diverse, global base of customers from multibillion-dollar manufacturers to entrepreneurial startups for nearly 50 years.

CKC Engineering, also with headquarters in the San Francisco Bay Area, provides innovative automated equipment solutions to a variety of clients, from small startups to large manufacturing companies, in and around Silicon Valley and the West Coast.

Depatie Fluid Power, with headquarters in the southwestern Michigan city of Portage, has served the hydraulic and pneumatic power needs of thousands of customers across western Michigan and northern Indiana for more than 60 years.

dst-ckc-deal-tombstone

GROWTH OPPORTUNITIES
Growing market – This opportunity presented a way for Depatie Fluid Power to balance its business in the fast-growing market for factory and infrastructure automation, controls and data. Combined, these companies, DST Controls and CKC Engineering offer the full suite of capabilities in automation. Strategically, they share many similarities with Depatie that will allow it to leverage engineering, business systems, sales and support across to build new ideas and create efficiency.

 

INVESTMENT HIGHLIGHTS
Future investment – The merging of DST Controls and CKC Engineering is an investment in the future and it creates a combined company that can perform in the industry. Buying the California automation firms was a natural progression as Depatie Fluid Power continues to expand beyond its traditional fluid power offerings.

Enhanced customer value – Customers of the combined Company will have a nimble and experienced partner that can support all their automation requirements. Since the acquisition, and to highlight the next chapter in their automation journey, the two companies will merge and be rebranded as CKC Automation.

Employee future – Employees of DST Controls and CKC Engineering will gain additional opportunities for personal growth through new projects, customers and technologies because the development of employee expertise is a cornerstone of the organization

Contact: NuVescor Group
(616) 379-4047

 

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MIDWEST PLASTIC PRODUCTS AND MOLD MANUFACTURER

by | Feb 17, 2023 | Active, Manufacturing

MIDWEST PLASTIC PRODUCTS

AND MOLD MANUFACTURER

This 27-year-old Midwest Company manufactures high-quality, plastic injection-molded components and plastic injection molds for original equipment manufacturers and suppliers in a broad variety of industries. Its ability to provide product development and production under one roof has won the Company a loyal, diverse base of customers in its manufacturing-rich home state. A change in management a decade ago has brought new investment in equipment and ISO/IATF quality certifications. With an experienced staff, modern equipment, and broad plastics capabilities, the Company presents opportunities for continued growth. The owners are willing to assist buyers through a reasonable transition period but wish to sell the business to focus on their other business. 

GROWTH OPPORTUNITIES

Room for Growth – The Company’s facility is operating at about 50% of capacity.

Sales Focus– A recent review of the customer base revealed sales that were not profitable. Those customers have been removed and there is capacity for much higher profitability customers, which is reflected in the 2023 Forecasted EBITDA.

INVESTMENT HIGHLIGHTS

Wide capabilities – The Company offers its customers product development and manufacturing under one roof.

Modern facility – The Company has updated its equipment by adding new electric molding machines, automation and tool room equipment.

Industry certification – With ISO & IATF certifications in place, customers can be confident that products will meet high quality standards.

Experienced, knowledgeable staff – The technical staff has expertise in design, development and production of international quality products. Its top six managers have an average tenure of more than 10 years with the Company.

2021 Revenue: $12,200,000

2021 EBITDA: $50,000

2022 Revenue: $11,200,000

2022 EBITDA: ($153,000)

Forecasted 2023 Revenue: $7,500,000

Forecasted 2023 EBITDA: $750,000 

Contact:

NuVescor Group

(616) 379-4047 Ext: 106

Non-Disclosure Agreement

MIDWEST INDUSTRIAL EQUIPMENT SALES COMPANY (NVC2211)

by | Sep 26, 2022 | Completed, Manufacturing

MIDWEST INDUSTRIAL EQUIPMENT SALES COMPANY

This Company sells and services new and used high-quality industrial woodworking and panel processing machinery to customers in several midwestern states, building a wide and loyal client base over several decades in business. It benefits from a knowledgeable and productive sales staff and strong, long-term relationships with manufacturers of the world’s finest machinery in its industry. Demand for its products is strong and growing. With a large base of established customers and a solid reputation, the Company is poised for growth. The owner is willing to assist new owners through a transition period of up to one year.

GROWTH OPPORTUNITIES

Sales capacity – Hiring additional qualified sales personnel could help the Company leverage its broad customer base and quality reputation to increase business.

Growing market – Increasing demand for woodworking and panel processing equipment is led by customers in the kitchen cabinet, furniture, millwork and recreational vehicle industries.

INVESTMENT HIGHLIGHTS

Strong customer base – The Company has built a wide and loyal following of more than 1,000 customers. Its top ten clients have been with the Company for an average of 15 years.

Experienced, capable staff – Outstanding sales, service and technical support are provided by employees with average tenure of 20 years.

Supplier relationships – The Company represents some of the world’s finest manufacturers of woodworking and panel processing machinery, with whom it shares solid relationships. Its top five suppliers of equipment and parts have partnered with the Company for an average of 23 years.

2021 Revenue: $5,600,000
2021 EBITDA: $650,000

Contact: NuVescor Group
(616) 379-4047

 

Non-Disclosure Agreement

MIDWEST WATER TREATMENT SYSTEM MANUFACTURER (NVC2224)

by | Mar 21, 2022 | Completed, Home Feature, Manufacturing, Sell Side Feature

MIDWEST WATER TREATMENT SYSTEM MANUFACTURER

(TRANSACTION CLOSED SEPT 2022)

This Midwest Company manufactures cost-effective, eco-friendly water treatment systems to control hard-water scale and corrosion for residential, commercial and industrial customers. Its proven technology, developed over decades in business, has been used in over half a million successful installations across the U.S. and world. It can be adapted for use with any size system, and the Company provides the engineering know-how for custom projects. Through its longevity in the market, customer service and time-tested technology, the Company has generated strong customer loyalty. With high profit margins and a history of increasing sales, the Company offers a valuable opportunity for new owners with a focus on marketing and advertising.

GROWTH OPPORTUNITIES

Unused capacity – The Company’s facility could accommodate an estimated four times the current sales volume.  

Boost sales efforts – The current owner juggles multiple duties, including sales and marketing, only scratching the surface of potential sales. Focusing more resources on connecting with new customers could boost business.

INVESTMENT HIGHLIGHTS

Profitable business – The Company currently generates substantial profit margins. 

Top technology – Its unique water conditioners outperform all competitors in physical water treatment. 

Adaptability – The Company’s technology can be tailored to any size system in residential, commercial and industrial settings. 

Established distribution – Sales are nearly all through a broad dealer network, some with 30 years of experience selling the Company’s products. Its top 5 dealers/distributors have been on board for an average of 7 years. 

2021 Revenue: $ 2,450,000
2021 EBITDA: $ 1,400,000