Reference Number: HGH285
Location: South East UK
Status: UNDER OFFER
- 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.
|– Prototype and production|
– CNC Milling
– CNC Turning
– Conventional Milling
– Turning and grinding
|– TIG Welding|
– Mechanical and Electrical Assembly
– Leak Flow Testing
– Bead Blasting
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
- 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.
|YE 31st Mar||2014||2015||2016||2017||2018|
- 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.