Pipework Equipment Supplier For The Petrochemical Industry For Sale

Business description

SOUTH YORKSHIRE
SUPPLIER OF ON AND OFFSHORE PIPEWORK EQUIPMENT FOR PETROCHEMICAL INDUSTRY

• Established over 30 years
• Turnover 2009 £1.1m
• EBITDA averaging £48,000 from 2006 - 2009
• £320,000 with the business to be relocated
• Reference: 1013 DN

BUSINESS SUMMARY

This successful and profitable company has developed an excellent reputation in the field of supplying oil and petrochemical flanges, valves, pipes, steelwork and peripherals, servicing the specific requirements of a diverse and high profile global client base.

The company which has been established for 30 years, has enjoyed a successful trading history. Over this period the business has generated significant and consistent profits. The customer base consists mostly of large petrochemical conglomerates, blue chip companies and service and repair specialists with a global reach. In financial terms the balance sheet is strong, with a high EBITDA figure in recent years ensuring excellent earnings for a new buyer. The company has both consolidated its place within this sizeable niche industry and has achieved a well respected position in the market place. Overall the market for oil and petrochemical pipe work and ancillary products is strong globally.

The company would be an ideal purchase for a similarly sized or larger corporate, possibly within the pipe and metal work manufacturing industry, and with an acquisitive growth strategy. Such a purchase would give access to mature, repeat and high profile, global customer base, as well as a company with solid financials. Alternatively, this business could form an ideal adjunct to an existing engineering company seeking to diversify both vertically and horizontally by capitalizing on an already very well established client base within the industrial steel and pipe work industry.


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Other information

Expansion potential:

The overall market for steel pipe work and ancillary products is substantial in financial terms, and global in geographical terms. The potential for growth is significant. To date, the business has revolved around the industrial requirements of large corporate and military clients, but it is clear that investment in business development activities, and possibly additional sales staff, could generate very considerable volumes of business. There are many different areas of opportunity for the business to diversify and expand its product and supply range to different markets including marine pipe work and steel work products. It would be sensible for a new buyer to explore additional markets in terms of industry sector. Further sales could probably be developed by updating the existing website, possibly with a fully functioning purchase facility. The vast majority of work currently commissioned is through recommendation or by way of repeat business.

For the right buyer, the advantages could be considerable in terms of access to a mature and high profile global customer base, where generation of additional work from these and un-approached similar clients would be entirely feasible. In addition, it is probable that significant cost savings could also be made through integration of the business with an existing company with good links to Oil and Petrochemical accessories supply companies.

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