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 VEHICLE SEATING PRODUCT LINE
MICHIGAN-BASED VEHICLE SEATING PRODUCT LINE
A Michigan-based manufacturer is offering for sale an OEM product line that has produced consistent sales and profits. The product is a federally-certified seating system component for a specialized market. A single customer currently accounts for steady year-over-year sales. The product offers untested potential for growth through marketing, particularly for a buyer with existing sales efforts in a related field. As the current owner moves to focus on other innovations, this product line is an excellent purchase opportunity for a manufacturer with existing capabilities in a related field or one looking to enter the vehicle seating field with a product that has steady sales and healthy margin.
GROWTH OPPORTUNITIES
Expanded Sales Through Marketing – A broader market has not been tapped; a company with an existing sales team could readily add this product to its marketing to reach new buyers.
Growth in Sales of Specialized Market – Current economic and demographic trends are driving record sales and projected growth in the end-product vehicles in which this product line is utilized.
INVESTMENT HIGHLIGHTS
Consistent Sales – This product is an essential component in the current sole customer’s production. Sales to that customer have been consistently strong the past five years.
Portable Turnkey Production – All tools, fixtures and process equipment for production are available and easily transported to the buyer’s facility. Production can be accommodated in as little as 2,500 square feet and with two dedicated employees. Vertical integration of component manufacturing of over $350,000 consisting of stamping, welding and roll formed components.
Limited Potential Competition – Tooling costs and product certification requirements present high barriers to entry for any would-be competitor in this limited market.
The product line consists of steady volume production with a 5-year average of approximately 8,150 units/year at roughly 700 per month. Nearly 100% of the sales are to one long-time sales channel within the RV seating industry. The product is a complex, high strength, tight tolerance mechanism with six axis articulation, which can be used as a valuable sales tool for value added work. Currently, the machining, welding, and roll-forming are outsourced, and the two dedicated employees provide value-add assembly at 0.46 hours per adjustor. Two operators can build, test, and pack 35+ units per 8-hour shift. All of the tooling is currently owned by the Company and is valued at approximately $1,000,000. Although not patented, the product line is protected because the tooling is owned by the Company, creating a high barrier to entry for a competitor. The product line also must pass three safety tests of the National Transportation Safety Board (NTSB).
2018 Product Line Forecast: $1,382,550
2018 Product Line Gross Profit Forecast: $481,111
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