Electrical Contact and Switch Component Manufacturer for sale

Reference Number: HGM028

Location: Home Counties UK

Turnover: £1.5m

Status: Offers Invited

  • Outstanding opportunity to acquire an established, high margin manufacturer of electrical contacts, precision presswork and contact assemblies, based in the Home Counties.
  • To fabricate its niche range of products, the company uses a range of precious metals, predominately silver but also gold, platinum and palladium products.
  • Founded in 1987, the company has grown from initially just 2 employees (the vendors) to a substantive business employing over 20 staff.
  • The 22,500 sq. ft. factory is equipped with extensive manufacturing technology and uses innovative quality control methods.
  • Their extensive customer base, including many ‘blue-chip’ clients, covers all sectors of the electrical engineering industry from aerospace and automotive to domestic appliances, both in the UK and abroad.
  • There are only 3 other UK-based switch component manufacturers operating in the same niche market supplying uniquely specified components within this high added-value sector.
  • The contacts/presswork market is highly competitive and the company hold a commanding position within it.
  • All of the business is repeat and many customers have been with the company since its inception.
  • In the financial year ending March 2016 the company had 81 active accounts and the largest customer spend was £264k.
  • The turnover to March 2016 is c. £1.5m with a gross profit of c.£1.1m.
  • The Company is registered under BS EN ISO 9001:2008.
  • The company would be an ideal bolt-on acquisition for a larger company in a similar sector, wanting an electrical contacts division.
  • A larger company may not need to take on the existing office-based personnel and merely employ the technicians – resulting in large synergy savings.
  • With a solid, established platform from which to sell to the UK and Europe, the acquisition may also appeal to an overseas contacts company seeking to develop new markets and business in Europe.


  • Solid and bi-metal headed electrical contacts
  • Precision presswork
  • Contact assemblies produced by processes including riveting, wire-welding, micro-welding, soldering and brazing.


  • There are 6 office-based employees including the two vendors, a Sales & Marketing Manager and Works Manager. Additionally, there are 20 operatives, tool-makers and setters, the large majority of whom are full-time.


  • A 22,500 sq.ft. premises, two-thirds of which is occupied by the business as office and factory space.
  • The property is owned by the vendor’s holding company, and there is no lease in place.
  • The sale does not include the property but the vendors are willing to put in place a short-term agreement to allow time for relocation.
  • The vendors believe that a larger, existing company would achieve greater gross margins by absorbing this company within their existing premises.

Reason for sale

The vendors wish to retire, but will support a full handover.

Financial overview

Year ending 31st March 2013 2014 2015 2016
Sales revenue £3,043,353 £2,709,373 £2,187,661 £1,527,974
Gross profit £1,397,497 £1,557,569 £1,408,608 £1,089,000
Percentage 46% 57% 64% 71%
Adjusted EBITDA £443,574 £420,805 £499,972 £265,832
Percentage 15% 16% 23% 17%
Offers Invited

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