Steel and Aluminum Fabricator Business For Sale

Business description

Business Summary: Our Client is a leading supplier of steel and aluminum fabrications that also engages in material processing and provides supplies for brake machinery. The Company operates as a unique job shop and does not manufacture a specific production item. It predominately fabricates pipe, ducts, plates, tanks, hoppers, vessels, and structural steel for a wide variety of manufacturers including water treatment, packaging, and power plant industries.

Revenue Mix: The revenue mix is typically made up of the products and services listed above; however, it will shift from year-to-year due to the specific needs of the customer base. In 2006, fabrication accounted for 87.7% of sales, material processing, 10.8%, and brake machinery sales, 1.5%.

Markets & Customers: The Company’s customer base is comprised of approximately 27 active accounts. It primarily markets its products and services in the waste treatment (56%), water treatment (28%), and material handling (8%) industries.

Organization: The Company began operations in 1987, and was recently re-organized as an S-Corporation in 2004. Current ownership consists of one principal, while the staff is comprised of 36 full-time employees, including 30 individuals in the fabrication shop and a 3-person management team.

Facilities: The Company operates out of a fabrication and office site totaling 35,071 square feet. The fabrication facility was designed for continuous material flow from the south end of the building, to the north end through the use of movable cranes. The real estate is owned by the Principal and available for purchase or as part of a long term lease.

Competition: The Company operates in an industry which is highly fragmented and includes industry participants range in size from smaller local and regional providers to significantly larger and better-capitalized national and multi-national firms. Management cites approximately four direct competitors in the Company’s immediate marketplace.

Why is the Company a Success? Success in the industry is largely driven by the level of customer support, production capabilities, and pricing; areas in which the Company clearly excels. These and other factors contribute to a 99% rate of repeat business and position the Company well for continued growth and success.

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