This profitable sub contract business specialises in prototype and small volume production often working in hard to machine materials. Its principal customer is JLR but it also has long-established relationships across many sectors. Sales in the current year are expected to reach £XM generating an Adjusted EBITDA of c £Xk. It was established in 1980 by the current owner who now wishes to retire.
The Company is located in modern premises on a substantial Industrial Estate in the West Midlands. It has an impressive range of modern machine tools including CAD/CAM linked CNC Machining Centres, CNC Lathes, a CNC Jig Borer and CNC Millers. Materials up to 1000mm X 620mm X 600mm can be handled. There is limited requirement for further investment over the next few years.
Typical materials machined include Alloy Steels, Tool Steels, Titanium, Inconels, Stainless Steels, Duplex Steels through to Aluminium, Brass and plastics.
The relationship and track record with JLR, on its own, offers significant opportunities for growth as JLR continues to expand. However, there are also established relationships with blue-chips across a number of non-automotive sectors.
The owner works in the business full time, operating in the MD role. He has a team of 4 reporting directly to him covering all the main functions of the business and there is currently a total workforce of 17 including the MD.
In recent years the business has generated annual sales of up to £XM generating a peak Adjusted EBITDA of c £Xk. There is significant potential additional capacity should it be required via introducing additional shifts. There is also some space for additional machinery.
The sale of this Company represents a rare opportunity to purchase a well-located business with an exceptional engineering reputation and expertise in prototype and small-run production machining. Particular features of this business include:
A strategic relationship with JLR with substantial opportunities for profitable work well into the future
Relationships with blue-chips across a number of sectors
High quality, modern plant and machinery in a modern, efficient workplace
Second line management team in place
An highly skilled work force
The Base Guide Price for 100% of the shares is £X including Net Assets at Completion expected to exceed £X. The owner will assist with handover for a period of up to 6 months on a decreasing days/week basis.