Oil Lease Site Construction Company In Saskatchewan For Sale

Business description

Nearly forty year old business for sale that has built a solid reputation for safety and service providing sand and gravel primarily to oil lease sites, as well as municipalities and private landowners in the region. The Company’s reputation has provided for the establishment of long term contracts with major oil companies. This Company is well positioned to capitalize on the increased oil exploration and development in the area.

Highlights of Business:
- Long term contracts with major oil companies
- Opportunities exist to enter into long terms contracts for the supply of sand and gravel
- Strong rebound in FY 2011 from a difficult 2010. The Company showed a profit in 2010 despite the difficult conditions.
- The oil industry continues to move into the Company’s territory

Asking Price: $3,800,000 = $2,700,000 Business/$1,100,000 Land & Building

Note: Cash flow = Annual net income before taxes + depreciation + interest + owner draws and benefits)
This business is being marketed by Travis Kellett, Broker. To contact, please click on the Contact Seller button at the bottom of this listing.

Property information

Real Estate:

Real Property Included

Location:

West Central, SK

Premises details:

The Company operates from two parcels of land that contain two shops/offices located in the industrial district of the community and a nearby location strategic to jobsites. Professional appraisals are available upon request.

Business Operation

Expansion potential:

The primary market is the oil patch in and around the Company’s base of operations. The oil industry has been increasing operations in this territory and the market is expected to grow rapidly in the next five years.

Competition / Market:

The only competitor is a privately owned company operating in the same territory. At the present time there is sufficient work to keep both companies busy.

Reasons for selling:

Owners wish to retire.

Employees:

14 Full Time / 6 Part Time

Years established:

1972

Other information

Support & training:

Owners will be available for a suitable transition period.