HC0009 – Aerospace Engineering Company for sale

Reference Number: HC0009

Location:

Turnover: £6.4m

Status: UNDER OFFER

Business overview

–      An outstanding opportunity to acquire a highly successful precision engineering, heat treatment and coatings company with a niche specialism in aerospace and industrial turbine components.

–      The company has developed specialist skills in the repair and remanufacture of highly complex turbine components with the capability to machine, coat and heat treat complex profiles within extremely tight tolerances, all in house.

–      The company is unique in this sector in the UK and the selected supplier for two major players in the turbine manufacturing and repair industry with long term contracts in place. It is also an approved supplier for three other blue-chip companies in the turbine engine market and therefore is well positioned to win business with other turbine manufacturers worldwide.

–      The business has achieved significant growth in the last two to three years with strong profitability and cash generation despite the current economic climate.

–        Circa 90% of the business is recurrent work from the existing client base, which leaves significant potential for the new buyer to expand the business through re-invigorated sales and marketing activities.

Products and Services

–        The company is capable of repairing and remanufacturing 90% of the precision components that are required in a gas turbine engine, whether military aircraft or industrial.

–        Parts are delivered to the company in ‘dirty state’; the company then triages them according to the level of repair required and then carries out the necessary cleaning machining, heat treatment and re-coating operations for delivery back to the customer.

–        All operations, except for one or two coating types, are performed in house by the company, thus representing a ‘one stop shop’ for the company’s customers.

–        The company is ISO 9001 and ISO 14001 approved.


Employees:

The owner + management team of 9 staff + 15 qualified engineers + 52 machine operators/fitters and non-skilled staff, a total of 76 employees.

Premises:

Leasehold premises in Scotland

Reason for sale:

The owner wishes to retire within a few years and is looking to relinquish overall responsibility for the business. He is however open to staying on in a management capacity for some time to come subject to agreed terms.

Financial overview

Year ending 30th   June

2009-10

2010-11

Sales revenue

£5.7m

£6.4m

Adjusted EBITDA

£2.0m

£2.5m

Percentage

35%

39%

UNDER OFFER

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