Industrial Machinery Distributor For Sale

Business description

Very profitable distributor of custom made industrial products and components for the Fluid Power Industry. The Company was founded in 1993 and supplies customers with customized and standard hydraulic components and systems. Primary products are both welded and tie rod hydraulic cylinders, gear pumps, solenoid valves, and power units. Products are manufactured at three separate Chinese manufacturing facilities and shipped direct to customers. The three manufacturing facilities were either established by the business or are joint ventures with the business. One facility specializes in tooling and mechanical parts for the Fluid Power Industry, another produces hydraulic cylinders, and the other pneumatic components. The company ships throughout the US and customers include both original equipment manufacturers and the repair after market businesses. The manufacturing facilities are independent operations and are not included in this sale. The business operates from an office in Southern California, sells through commissioned sales representatives, and does not inventory or handle any products. As a result of the off-shore captive manufacturing, low overhead, and direct ship program the business is a low cost, price competitive supplier to the Fluid Power Industry. There are significant opportunities to grow the business by adding additional products, expanding into the pneumatic components segment of the fluid power industry, and by providing inventory for the agricultural replacement market. Expansion and growth is dependent on additional working capital investment and is the reason for the sale. The founder/seller would like to remain as an employee and assist new ownership in developing business and in sourcing products and managing the relationship with the off-shore captive manufacturers. SUNBELT BUSINESS BROKERAGE (“Broker”) has made no independent investigation or verification of any representation, warranty, document, or information presented by the seller herein. Prospective buyer is responsible for their own independent investigation with respect to such items and is advised by Broker to do so and to obtain the appropriate counsel from legal, accounting and other professionals concerning this business opportunity.

Property information

Real Estate:

Lease

Lease terms:

1,000 sq ft at $1,500/month

Other information

Support & training:

Seller will provide 4 weeks at 20 hours per week

Reasons for selling:

Pursue Other Ventures

Financing available:

Seller will finance $800,000 of purchase price for qualified buyer

Furniture / Fixtures value:

$5,000 (included in the asking price)