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Listed by:

NorWest Business Sales, Inc.

Broker license number: 840700006

Fire Arms Manufacturing In Vernonia For Sale

Vernonia, Oregon
Asking Price:
$1,200,000 (USD)
Sales Revenue:
$1,500,000 (USD)
Cash Flow:
$385,000 (USD)

The Company designs, manufactures, imports, and markets modern rifles and pistols. In December of 2015 management signed two major distribution contracts. The first with Cabela’s (50 stores nationwide) and the second with Canadian Tire, which owns 200 FGL Sports Ltd. Stores which is the largest, and only national, sporting goods retailer in Canada. n the fourth quarter of 2012, The Company introduced two modern rifles and a pistol. The Aero Survival Rifle (ASR) is engineered to breakdown efficiently without the use of tools. This unique, patented configuration allows for easy barrel and bolt assembly removal for multiple caliber changes. The Aero Survival Pistol utilizes the same patented technology as the ASR and features a shorter barrel. The second rifle, the SGP-QCB, features a patented Gas Piston - Quick Change Barrel rifle. This advanced firearm has a quick change barrel and gas piston system unique in the industry. This is the only AR style rifle with “Hot Swap” technology, allowing the user to swap the barrel and gas system in seconds for a sustained fire situation similar to a SAW. The SGP is manufactured with a billet upper and lower. This design provides the ability to meet any tactical situation by simply changing the barrel length and caliber - all within seconds. This firearm comes standard with a .223 caliber barrel. The ASR Package gives you all you need to convert your new ASR to any of the three available calibers: .45 ACP, 9mm, or .40S&W. The ASR is equipped with a 4x scope, quick change barrel, and AR collapsible stock. The ASR's compact design allows it to fit in small storage compartments or the company’s proprietary designed daypack. The pistol is available in .45 ACP, 9mm, .40S&W, 10mm, and .357SIG calibers. Both the ASR and ASP (pistol model) are machined from aircraft aluminum. The ASR is also coming soon in .22 LR, .22 MAG, and .17 HMR.

Property Information

Real Estate:

Lease

Lease Terms:

4 five year terms

Leasehold Rent:

$4,000 (USD) per annum

Location:

The company is operated in a rural part of the state within 45 miles of the state’s largest city. The approximately 8,500 square foot (approximate size) manufacturing facility is approximately 30 years old and is of a wood frame construction with a metal roof. A second building is used to store barrels, box foam and boxes. It is approximately 3,000 sq ft. Both are located onapproximately 5 acres of land owned by the Seller. The building and property are not for sale at this time. The current rent is $7,250 per month, triple net. The seller is willing to take $4,000.00 as rent payments after the sale. The building is divided into a machining area with 3 Haas machines, an assembly floor with wooden work tables, an R&D space and old weapon assembly room, a bluing, parkerizing, sandblasting & test fire room, and offices upstairs. There are no DEQ or HAZMAT issues related to the facility.

Premises Details:

See Location

Business Operation

Expansion Potential:

Growth & Expansion:
Management has determined that taking the company to the next level will require someone with greater marketing and operating experience. The Seller will remain for a number of years if desired by the buyer to transition their knowledge and experience. All key employees are expected to remain after the sale if desired by the buyer. STRENGTHS ? Established brand name ? Patents on modern rifle & pistol lines ? Experienced employees ? Recently added 50 chain-store: Cabela’s, as a retail distribution channel, December 2015 ? Added 200 chain-store retail distribution channel: FGL Sports (Canada), December 2015OPPORTUNITIES ? Introduction of new rifle & pistol models (one is in the final testing stage) ? Bring more manufacturing in-house to increase margins

Competition / Market:

The Company faces significant domestic and international competition and its competitors vary according to product line. Certain of these competitors are subsidiaries of large corporations with substantially greater financial resources. a. Wise Lite Arms; Wise Lite Arms is a leading manufacturer of military style firearms. Their research and development team has successfully designed many sought after BATFE FTB approved 922r compliant converted semiautomatic machine guns and submachine guns for collectors, marksmen, and re-enactors. They have mass production capabilities and are able to provide firearms to both distributors and firearms enthusiasts. This competitor only sells this one product line. b. Central Wisconsin Armory; CWA specializes in the 50BMG Browning family of M2/M3 based belt fed weapons. Its Dragon M-50 has proven itself as the premier configuration for the 50 BMG Heavy Machine gun. This competitor only sells this one product line. c. Mechtech Systems, Inc.; manufactures a 1911 CCU system which installs a Glock pistol converting it into a rifle configuration. A CCU system is an 'upper' for an auto loading pistol. d. Kel-Tec CNC Industries, Inc.; manufactures 7 handgun models and 8 rifle lines. Rifles retail for 1.5 times The Company’s price. e. Colt Manufacturing Company; Colt is a primary US military firearms manufacturer. Colt’s rifles are the only rifles available to sportsmen, hunters and other shooters that are manufactured in the Colt factory and based on the same military standards and specifications as the United States issue Colt M16 rifle and M4 carbine. Prices vary by model and retail at twice The Company’s price. f. DPMS Firearms (owned by The Freedom Group); is one of the largest US rifle manufacturers. It manufactures multiple lines of tactical, competition, hunting, varmint, and target rifles. g. JnC Manufacturing; Specializes in 50 calibers, they build the Browning Heavy gun. This competitor only sells this one product line. c. Mechtech Systems, Inc.; manufactures a 1911 CCU system which installs a Glock pistol converting it into a rifle configuration. A CCU system is an 'upper' for an auto loading pistol. d. Kel-Tec CNC Industries, Inc.; manufactures 7 handgun models and 8 rifle lines. Rifles retail for 1.5 times The Company’s price. e. Colt Manufacturing Company; Colt is a primary US military firearms manufacturer. Colt’s rifles are the only rifles available to sportsmen, hunters and other shooters that are manufactured in the Colt factory and based on the same military standards and specifications as the United States issue Colt M16 rifle and M4 carbine. Prices vary by model and retail at twice The Company’s price. f. DPMS Firearms (owned by The Freedom Group); is one of the largest US rifle manufacturers. It manufactures multiple lines of tactical, competition, hunting, varmint, and target rifles. g. JnC Manufacturing; Specializes in 50 calibers, they build the Browning Heavy Machinegun.

Reasons for selling:

Moving into a completely different field

Trading hours:

7-4 M-F

Employees:
12
Years established:
1995

Other Information

Furniture / Fixtures value:
$300,000 (USD)
Inventory / Stock value:
$500,000 (USD)
Relocatable:
This business can be relocated.

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