Manufacturer of MDF Door & Moldings For Sale

Business description

This Company is a manufacturer of Medium Density Fiberboard (MDF) doors, shutters and moldings. The company is ideally situated in close proximity to the area’s largest raw material MDF plant. The business was founded in 1996 and has grown from one man’s entrepreneurial vision to 16 million in annual revenue in just over a decade. The company has close to 100 customers with the top 5 representing approximately 25% of revenue. Superior product diversity is this Company's claim to fame. None of the company’s competitors can compete with the depth and breadth of this Company's product line. The company wins customers and maintains their business over time by being a one-stop shop where multiple product lines can be shipped out on one truck saving customers significant time and hassle not to mention significant savings on freight and handling charges. New customer relationships are poised to push the company to 24M in revenue in 2008.

Property information

Lease terms:

Property is leased from the County. Current owner believes that the County will allow the lease to be assigned or a new lease negotiated at similar terms.

Location:

This company is located in Arkansas

Other information

Expansion potential:

The capacity growth in the North American MDF industry was marginally higher in 2006 but it will likely accelerate. In 2007, new installations added about 8.2% to capacity to reach approximately 6.2 million cubic meters (m³) up from 5.7 million m³ the year before. Next year, capacity is predicted to advance by about 9.3% or slightly in excess of one-half million m³ to a total of approximately 6.8 million m³. The North American MDF industry is also progressing by way of shifting its production towards higher value-added products. Almost all of North American MDF mills intend to increase their volumes of non-standard or added-value grades. The growth of such products amounted to an estimated 24% in 2007, which may result in an even higher growth rate in the 27% range. Currently, nonstandard output represents about 14% and may rise to as high as 20% in 2008. Laminate flooring is undoubtedly the brightest prospect for the North American MDF industry. This applies in particular to ATC (Shippenville and Moncure), Flakeboard, Unilin (Mt. Gilead), and SierraPine (Medford). Other forms of new non-standard MDF being developed and coming on the market include lightweight panels, building boards, overlaid boards, and higher performance boards.

Competition / Market:

The Company’s depth of product lines distinguishes this Company from its competitors. There are competitors that are larger than this Company in single line offerings like molding manufacturers, but no one in the industry offers as many product offerings in MDF than this Company. Major competitors are PacTrim, Harmony Moldings and a few South American MDF mills that also manufacturer moldings. (Aruco, TruPan and Macessa.) The South American companies compete with very low pricing but shipping costs and delivery times are starting to scare off many customers. Lead times can sometimes exceed 90-120 days. Rising fuel costs are also impacting foreign competition. compete with very low pricing but shipping costs and delivery times are starting to scare off many customers. Lead times can sometimes exceed 90-120 days. Rising fuel costs are also impacting foreign competition.

Support & training:

Owner will provide support and traning in order to insure a seemless transition. CEO is willing to be retained under an emplyment contract.

Reasons for selling:

Owner has serious health concerns.

Trading hours:

3 shifts

Financing available:

Because of owners health issues, owner is looking for a cash transaction.

Furniture / Fixtures value:

$1,000,000

Inventory / Stock value:

$1,000,000