Electrical Component and Equipment Distributor With 3 stores For Sale

Business description

The Company is a highly regarded and rapidly growing multi-location distributor of electrical components and integrated electrical equipment, including control, instrumentation, and power products in Western Canada. The Company sells its 3,500+ SKUs principally to original equipment manufacturers (OEMs) with the balance of business coming from electrical contractors and industrial end-users. The Company has a strong, diversified customer base of over 400 clients. The Company expects to continue its expansion program to include several new locations in the near term. According to management, a new location in a metropolitan area will generate approximately $0.4 million in first year sales with only two employees. Over a 6-year period this location should increase to sales of $2.4 million with only 6 staff members. Rapid sales growth (24.7% compounded annually from 2005 2007). Increasing profitability (EBITDA has doubled from 6.3% of sales in FYE 2005 to 13.4% of sales in FYE 2007). The Company has the potential to replicate the success of existing locations in as many as 70 locations in 50 US cities. The Company s strong ties to clients is represented by an enviable 95% retention rate. Experienced management and staff available to remain with new ownership.