Cast Iron Machining Company For Sale

Business description

The Company is a manufacturer specializing in machining of large scale steel and cast iron.

Founded by the present owner in 1991, this Western Michigan-based business has built a strong reputation for consistent, quality work on pieces ranging from 10,000 to 40,000 pounds. The company has the unique capability to ship, receive, handle and machine massive iron and steel pieces that tool & die makers throughout the country have refused due to size. The company is a member of the The American Mold Builders Association and The National Machine Tool Association.

Machine work has been referred to the Company from throughout North America. The bulk of the machining business comes from tool and die makers. However, work has also been performed for such companies involved in the manufacturing of equipment for the oil and gas industry. End users are the automobile industry, oil & gas industry, the U.S. Navy and many other prestigious national and international companies. The closest competitors are currently located in Chicago and Detroit.

Because of its specialized niche, the Company performs well in favorable and unfavorable economic conditions. Demand for its services remains strong due to the Company’s rapid turnaround and competitively-priced solutions to its customers’ needs.

Since 2004, sales have ranged from $3,000,000 to $3,900,000 and the company's cash flow has ranged from $418,000 to $459,000.

Machinery & Equipment FMV-Installed (March 29, 2006) $3,326,950

Real Estate Appraised Value (June 15, 2005) $1,050,000

Property information

Real Estate:

Lease

Lease terms:

Available for lease or sale

Location:

The Company has grown machine-by-machine. Its present facility is 22,000 square feet, with 600 square feet devoted to office space.

Other information

Expansion potential:

Because of its niche and long-standing reputation, the Company strongly benefits from word-of-mouth advertising. Therefore, the present ownership has not felt it necessary to utilize any sales personnel. However, the addition of a sales and marketing department or person would almost undoubtedly increase sales, which would help mitigate the excess capacity in the company's facility.

Support & training:

Owner willing to assist in reasonable transition period.

Financing available:

negotiable