Bespoke Generator Set Manufacturing Company For Sale

Reference Number: HDM036

Location: Midlands UK

Turnover: £3.2m

Status: Under Offer

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Business Overview

  • Outstanding opportunity to acquire an established company specialising in the manufacture of high quality, highly bespoke power generating sets and associated switching gear.
  • Sales in recent years have ranged from £1.1m to £1.7m with a solid gross profit and EBITDA. The current year has seen a significant increase in demand with several large orders from overseas customers for generator sets.
  • Revenue in 2014/15 to October was £3 million. The final total by year end is on target for £3.2 million with several key projects currently underway.
  • The company typically exports more than 80% of its products to overseas customers.
  • The company, founded in 1964, has a solid trading history of 50 years.
  • The company has provided generating sets to a wide diversity of business sectors including agriculture, airports, banks, education and hospitals.
  • The company provides a complete turnkey service from the initial assessment of the customer’s requirements through to commissioning and on-going maintenance in the UK. Assistance is optional for overseas commissioning and installations.
  • The sale offers an outstanding opportunity for an engineering business or group of investors to acquire a world-renowned specialist in the provision of electrical generating sets with metal fabrication and electrical panel assembly, designed in-house.

Products and Services

  • The company specialises in the design, manufacture and installation of power generation equipment for use in either primary or standby applications.
  • The company manufactures:
    • generating sets – diesel, petrol, gas or marine powered;
    • motor generators;
    • frequency converters;
    • electrical control panels;
    • electrical distribution panels;
    • low and high voltage panels;
    • diesel power packs;
    • welding sets;
    • pump sets; and
    • acoustic enclosures.

 Premises

  • The business operates from a highly accessible location in the Midlands.
  • A purpose built 6,380 sq ft factory and office premises are set within a 0.9 acre secure yard served by a comprehensive security system, interior and exterior with central monitoring and remote viewing.
  • The current freehold is owned by the Vendor in a separate company. The Vendor is open to selling the property, otherwise the premises are available on a leasehold basis at a rent of £35,000 p.a.

Employees

  • There is a highly skilled and well trained workforce of 16 employees plus the 2 shareholding directors.

Reason for sale

  • The sale has been instructed as the Vendors wish to retire and are currently working part-time. The Managing Director is committed to a smooth handover and as such could be available on a consultancy basis, to be negotiated.
  • The directors have also put in place a highly effective management team who will remain with the business.

Financial overview

YE: 31st Feb 2011/12 2012/13 2013/14 2014/15 forecast
Sales revenue £1.7m £1.5m £1.1m £3.2m
Gross Profit £570k £530k £410k £730k
Percentage 33% 36.3% 38% 23%
EBITDA £165k £150k £23k £340k
Percentage 10% 10% 2% 11%
Under Offer

 

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