Manufacturer Of Production Equipment For Electronics Manufacturers In NJ For Sale

Business description

The Company is a manufacturer and integrator of production equipment for electronics manufacturers, with a strong competency in precision tool design and construction. It has multiple product lines, value added services, and engineered production solutions. It manufactures a line of pneumatic presses used by manufacturers in a wide variety of industries and is one of only two distributors for a line of robotic soldering equipment manufactured in Japan.

The Company’s niche and competitive advantage lies within its knowledge, reputation, and experience. Customers require a high level of confidence in their vendors’ capabilities as parts are very expensive and often irreplaceable. The diverse product line offered and the Company’s experience has earned it an excellent reputation in the electronics industry and with other manufacturers. It has the ability to handle small production runs as well as much larger orders.

There are three distinct customer segments for each product line. The customer base for the lead forming division is comprised primarily of aerospace, defense, and semiconductor manufacturers. The presses segment has clients within the automotive, consumer appliance, medical device, and industrial manufacturer industries; and, other product lines are used within the electronics OEM’s and contract manufacturers’ market segments.

There are in excess of 130 active, repeat customers, many of which are large high profile names, with no single client accounting for more than 9% of gross revenues. Approximately 80% of sales in the lead forming business are generated from established customers located throughout North America and thirteen overseas countries.

Property information

Premises details:

The office and plant are located in a 12,000 square foot facility in northern New Jersey. The lease was extended in December 2010 for five years with a further 5 year option. Current rent is $8,160 per month ($8.16/ sq ft).

Other information

Expansion potential:

The Company has a strong base of established, repeat customers and has sustained a strong market position. The Principals recognize that the opportunity exists to capitalize on the Company’s excellent reputation, solid client base, market position and distribution channels. The groundwork and foundation have been laid and the operational infrastructure is in place from which to build upon. Some limited additional capital for marketing and sales management would be of benefit.

Competition / Market:

The Company’s niche and competitive advantage lies within its knowledge, reputation, and experience. Customers require a high level of confidence in their vendors’ capabilities as parts are very expensive and often irreplaceable. The diverse product line offered and the Company’s experience has earned it an excellent reputation in the electronics industry and with other manufacturers. It has the ability to handle small production runs as well as much larger orders.

Support & training:

Shareholders are willing to provide a flexible time period in order to ensure a seamless transition and would prefer to stay on as employees of the acquirer; the majority owner short term and the minority owner long term.

Reasons for selling:

One of the owners is seeking an exit strategy for near term retirement.

Trading hours:

The shop operates 7:00am to 3:30pm, and the office from 8:30am to 5:00pm.

Furniture / Fixtures value:

$500,000

Inventory / Stock value:

$200,000