Manufacturer of Plastic Injection Molding Machine Components For Sale

Business description

The Company is a manufacturer of feeding equipment and systems for plastic injection molding and extrusion equipment. Its products include barrels, screws, nozzles, tips, seats, rings, and body adapters for all types and sizes of thermo plastic and thermo set injection molding and extruding equipment. The Company was founded in 1977 and is a supplier to both original equipment manufacturers and to companies and distributors needing replacement parts. The market for the Company’s products is both domestic and foreign, and the world market for consumer and industrial plastic products is projected for continued long term growth. The Company has developed proprietary processes and equipment for producing its products. As a result, it is distinguished from competition through its ability to manufacture very high quality products from special wear resistant steels at a very low cost. These materials include Vanadis 10, CPM-10V, and D2 steels. They are exceptionally tough and hard and provide the highest levels of corrosion and abrasion resistance. The Company’s products are guaranteed to last twice the life of competitive feed units. The business operates from a 10,000 sq ft facility in Southern California. The facility is equipped to fully manufacture all products and includes proprietary custom made machining equipment for producing feed screws, CNC machining equipment, boring machines, and lathes. Only heat treating is outsourced to outside contractors. The facility can produce 300 units per year or $ 3 million in revenues at a lower cost and higher quality than competition. The Company has 150 customers and produces to order but has always produced 3 to 4 units per set-up despite the number of units ordered. This has resulted in a very large finished goods inventory.
The Company has never had any formal sales and marketing activity. Sales have been generated through repeat business, attendance at trade shows, and some direct selling by the President. There is a significant opportunity to increase sales through a formal sales and marketing program for the international OEM and replacement markets. There is an immediate opportunity to sell the existing finished goods inventory (about $5,000,000) and to maximize production capacity (about $3,000,000 per year).The business can be purchased for $2,800,000 with the producing assets valued at $300,000 and finished goods inventory of $5,000,000 that is priced at $2,500,000. The facility can be either leased for $6,200 per month or purchased for $750,000. This is a significant opportunity for an existing plastic equipment and/or component manufacturer to expand their markets, sales, and profitability. 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:

Real Property Included

Lease terms:

Property is not included in the price but can be purchased for $750,000 or leased for $6,200/month

Other information

Support & training:

Seller will provide 4 weeks of training at 20 hours per week

Reasons for selling:

Retirement

Trading hours:

M-F, 8-5

Financing available:

Negotiable

Furniture / Fixtures value:

$300,000 (included in the asking price)

Inventory / Stock value:

$2,500,000 (included in the asking price)