The size of the market for our products both locally (USA) and worldwide is bullish. Moreover, COVID has brought an outdoor awareness to a vast segment of the population who in the past was sticking to work or TV.
The recreational industry, as we all know, has exploded in the last few years and boating in particular has sustained enormous growth, again both locally and worldwide
Operations in US Pacific Northwest and along the French Riviera.
The Company began as a distribution enterprise catering to the Boating Industry with a single product out of Italy. The France based entity has evolved into a world leading manufacturer of its own proprietary shaft seal product.
- U.S Operations - 56% of Gross Revenue, 63% Gross Margin Contribution
- European Operations - 49% of Gross Revenue, 62% Gross Margin Contribution
From humble beginnings, the Company has grown to over $16,000,000 in 2022 targeted revenue and targeted Adjusted EBITDA of $3,600,000.
US Operations (2021):
- Sales - $11,430,875
- COGS - $4,956,411
- GP - $6,474,364
- Adjusted EBITDA - $2,614,900
Europe Operations (2021):
Combined Operations (2021):
- Sales - $3,579,249
- COGS - $1,861,335
- GP - $1,717,914
- Adjusted EBITDA - $471,956
- Sales - $15,189,086
- Adjusted EBITDA - $3,086,856
According to Global Market Insights,1 the recreational boating market size surpassed $35 billion in 2020 and is anticipated to grow at over 6.5% CAGR between 2021 and 2027.
The business is uniquely positioned to take full advantage of this boom now and in the future, leveraging both the uniqueness of its products as well as an unmatched reputation in an otherwise notoriously flaky industry.
Furthermore, the business provides not only products that people want but also products that people need, and for some of these products, the business is the only source.
As a company, it has been very conservative through the years, more tuned to always remaining profitable, sometime at the expense of growth. The owners are confident that a more aggressive strategy could significantly increase its reach in the next three to five years with the existing product line.
The Company sells its products to a wide range of customer classes with no concentration. Direct-to-consumer represents approximately 27-30% of the volume and the balance to retail, boatyards, and stocking distributors. D2C is solid margin business.
One of the two operations' product range is so popular that large industry players must maintain them in stock. Examples of such clients include retailer customer West Marine with 200+ locations, and wholesale/distributor Land & Sea that has with 17 locations.
West Marine is pushing suppliers to have more products, so they have fewer suppliers (they do not like to deal with single line companies) and Fisherman’s Supply in Seattle is a great example of retailers seeking a one-stop shop experience.
After over 40 years the owners decide it is time to exit.
One of the two owners is looking to retire in the near-term, and the second owner will phase out over several years and intends to remain with the Company if the acquirer would like him to continue for a time pending a mutual agreement.
They have been able to retain highly dedicated, motivated long-term employees, and have very low turnover. A second-tier management team is in place, and one of the two owners will remain on board for an extended period, while the other will remain available on an as-needed basis.
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