Pneumatic Control & Compressed Air Equipment Distribution Company for Sale

Reference Number: HFM057

Location: Midlands & Northern England

Turnover: £1.6m

Status: UNDER OFFER

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Business Summary

  • Outstanding opportunity to acquire a specialist pneumatic control and compressed air equipment distributor.
  • Two trade outlets serve the North of England and the Midlands whilst global sales are achieved via two websites.
  • A specialist division of the company deals with pneumatic control equipment for the transport industry.
  • The specialist range of carefully selected products extends to over 26,000 items.
  • The company has been one of the principal distributors for the UK’s leading pneumatic control equipment manufacturers for over 20 years.
  • Founded in 1991, the company has had to expand the size of both geographic operations over to time to meet demand.
  • The company has a very diverse customer base both in the UK and internationally many of whom are long-standing.
  • The company dealt with over 500 customers within the last financial year – approximately 30% of these were through an ever increasing online retail channel.
  • Key employees possess specialist and wide reaching product knowledge and engineering and support capabilities.
  • The acquisition of the business would be of interest to companies with a similar operation, “single source” organisations or companies with similar technical know-how in areas such as hydraulics or electronics.

Products & Services

The company’s 26,000 product lines include:

  • Pneumatics equipment including control equipment for the transport industry
  • Industrial Equipment
  • Air Compressors

Services offered include:

  • Full refurbishment and testing
  • Compressor Servicing
  • After-sales service and repairs
  • Preventative Maintenance
  • Pipework installations
  • Specialist services i.e. Pneumatic Circuit Design
  • Full Breathing Air quality testing

Employees

  • The Managing Director and Director (the vendors) manage a workforce of 13 predominantly long-serving and highly experienced employees, across the two branches.

Premises

  • The company operates two branches, one in the North of England and one in the Midlands.
  • The company owns the freehold of the northern branch which measures 3,000sq.ft. These premises were recently valued at £180k and the rates are £6,960 per annum.
  • The Midlands branch is on a three year lease (with two years remaining). The rent is £10,000 per annum, and the rates £4,368.

Reason for sale

  • The vendors are looking to retire but will support a transition of the business into new ownership.

Financial overview

Year ending 30th June2012201320142015
Sales revenue£1,389,628£1,381,804£1,483,382£1,619,310
Gross profit£416,098£423,865£440,051£506,083
Percentage30%31%30%31%
Adjusted EBITDA£102,723£98,243£107,306£154,772
Percentage7%7%7%10%
UNDER OFFER

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