Precision Engineering Company For Sale

• Outstanding opportunity to acquire a profitable, well established Precision Engineering company based in East Sussex, UK.
• The company offers a complete development and manufacturing service capable of producing components from small quantities of prototypes through to 500+ batch size production.
• Founded almost 40 years ago, the company has built up an enviable client base of blue chip companies in the Oil & Gas and industrial vacuum pump sectors as well as the MOD and some aerospace.
• Kanban and buffer stock agreements are in place with key customers.
• Repeat business accounts for over 85% of revenue.
• The company offers a wide range of services including: prototype development and batch production, full CNC machining and turning, conventional machining, precision TIG Welding, mechanical and electrical assembly, leak flow testing, powder coating and bead blasting.
• In addition, the company provides onsite support services in specialist inspection, cleaning, kitting, packaging and labeling.
• The company has taken a consistent approach to investing in new equipment and training over the years which has resulted in a modern looking, well run manufacturing operation.
• A strong Tier2 management team is in place and able to manage operations day-to-day.
• The company has built a solid reputation for their quality control and management systems and is ISO 9001 Quality Management certified by BSI.
• If customers require a rapid response time, the company can offer fast track facilities which are tailored to suit customer requirements.
• The sale represents an excellent opportunity for a larger precision engineering group with a need to expand capacity or looking to grow into other niche markets, or for an investment group an opportunity to acquire a profitable business with minimal outstanding loans, management capability in place and a solid basis and market for growth.
• There is sufficient capacity at the current site to enable potential sales revenue of £6m to £7m should both day and night shifts be fully staffed.

Services Provided

Employees

2 shareholding directors and 44 employees as follows:

• 4 Tier 2 management team (Production, Sales, Quality and Accounts)
• 4 Office staff (Quality and Admin)
• 36 Operations staff

Premises

• The company’s site comprises of three adjoining units one of which is owned by the company, and two of which are leased on 10 year terms.
• Total equivalent rent: £115k. Rates: £36k.
• Total area: 17,500 sq.ft operations + 1500 sq.ft. offices/mezzanine

Reason for sale

• The vendors are happy to stay on as required for a handover period.

Financial overview

• Adjusted EBITDA takes account of the directors’ replacement costs and equivalent rent on the freehold property.
• The company benefits from a strong balance sheet with minimal outstanding hire purchase and financial liabilities.