Precision Engineering Company – North of England UNDER OFFER

Reference Number: HDH117

Location:

Turnover: £4.5m

Status: UNDER OFFER

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Business overview

–      Outstanding opportunity to acquire highly profitable and well established precision engineering company specialising in high growth sectors including aerospace, medical devices, electronics including laser production and sub-sea.

–      The Company offers a comprehensive service, providing customers with fully finished and packaged “dock to stock” components.

–      A focus on technical expertise and quality products has enabled the Company to achieve ‘sole supplier’ status with many of its customers.

–      A quality management system is in place which has been developed to meet the requirements of AS9100 Rev C, ISO13485 and ISO9000:2008, all of which it holds.

–      The company is USFDA registered to produce surgical equipment for sale in the USA and holds BS EN 9100.

–      This company would be of particular interest to either a trade buyer or an investment group with a buy and build strategy, looking for a strategic acquisition to add to their portfolio.

–      This opportunity provides a potential purchaser with access to many lucrative and growing sectors, both in the UK and overseas.

–      Profitability is extremely good compared with traditional precision engineering companies and the Company is one of few to have its range of accreditations and be established in its respective markets, providing a purchaser with a solid platform for growth.

Products and Services

–        The company produces highly complex precision engineered components using a range of materials including Stainless Steels, Aluminium Alloys and polymers.

–        The business operates 14 CNC Machining Centres, 4 CNC Lathes, as well as conventional machining.

Premises:

–        The business operates from two factory units (12,500 sq. ft.) housing the workshop area, a picking and packing area and office suites.

–        Located in the North of England

Reason for sale:

–        The vendor is retirement age and wishes to exit the business.

Financial overview

Year

2010

2011

2012

2013

2014

Sales revenue

£3,000,000

£3,500,000

£4,250,000

£4,200,000

£4,500,000

Adjusted EBITDA

£550,000

£600,000

£1,100,000

£1,100,000

£1,100,000

Percentage

18%

17%

26%

26%

24%

–        The business has experienced 17.9% annualised revenue growth over the past two years, delivering an adjusted EBITDA in excess of £1.1m in 2012.

–        It is forecast to deliver an adjusted EBITDA of c£1.1m in 2013 and 2014.

–        The business has a strong, debt free balance sheet.

UNDER OFFER

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