Profitable and Growing Manufacturer For Sale

Business description

This very profitable manufacturer began operations in 1990 and has grown to be the market leader in its industry in Atlantic Canada. Unlike many Canadian manufacturers that have been adversely affected by the appreciation of the Canadian dollar vis-à-vis its American counterpart, this business does not export. All of its customers are in Atlantic Canada. Sales have reached the $7,000,000 (Cdn) level and the company has experienced 12% growth in each of the past four years.

With modern facilities and equipment, a strategic location, identified opportunities for growth, well-trained employees and operations management that will remain after the sale, this opportunity will appeal to investment groups and corporate acquirers that recognize existing synergies. A financing proposal has been received from a major Canadian lender ensuring that financing is available for qualified Canadian and American acquirers.

Property information

Location:

The business operates from a company-owned, 16,000 square foot wood frame building located on a 3 acre parcel of land. The lot has a large parking area and excellent road frontage. The original building was constructed in 1990 and a major addition was built in 2000. The building has been well maintained and there are no known deferred maintenance issues.

Other information

Expansion potential:

Pros: Several specific opportunities for growth have been identified and involve expanding the company’s market area and creating and instituting a marketing plan. The plant currently operates at about 90% capacity during peak periods. A second shift could be easily added if justified.
Cons: In order to expand the building additional land would have to be purchased.

Competition / Market:

Pros: There are several competitors but the company is the largest producer of its product in its market area. Cons: There are a number of locally based competitors.

Support & training:

Operational management will remain after the sale. The seller will assist the new owner during a reasonable transition period and will consider a longer term consulting arrangement.

Reasons for selling:

Retirement.

Financing available:

Seller will consider financing a portion of the purchase price in the amount of approximately of $3,500,000.

Furniture / Fixtures value:

$650,000

Inventory / Stock value:

$135,000

Contact the seller

For more information about this business for sale, click the Contact Seller button.

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