Electrical Contact and Switch Component Manufacturer for sale

• 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.

Products

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

Employees

• 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.

Premises

• 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

Offers Invited