Substantial Plastics Processing Manufacturer
Established nearly 30 years ago, this opportunity is a well-equipped and well-resourced plastics processing business with annual sales in excess of £2.5M.
Revenue is generated from a number of discrete product lines, including the manufacturing of its own range of products, resulting in a significantly de-risked trading profile. Client relationships are longstanding (many in excess of a decade) with no client accounting for more than 16% of sales. They are also spread across a number of sectors, from automotive to building products and electrical to storage solutions.
Located in the West Midlands, the company operates from a modern 17,000 sq. foot premises and employs 18 full-time staff including a management team.
Revenues have consistently grown year over year, other than the interruption for Covid, and sales for the current year are forecast at £2.6M, delivering an adjusted EBITDA in excess of £650k. The business model is robust and other than (the Covid affected) 2020, it has delivered an adjusted EBITDA in excess of £550k every year since 2016.
The Guide Price sought by the Vendors for 100% of the shares of the business is £2.8M.
The business will be sold on a debt free, cash free basis to include a Net Asset Value at Completion expected to be c. £500k. The balance sheet contains considerable surplus cash, with an expectation for that to be added to the consideration.
The business will be an attractive acquisition for both a larger trade buyer looking to extend its product range and / or technical and manufacturing capability and also those looking for a stable stand-alone business, with significant further growth opportunities.
Contact: Chris Elliott or Peter Wilson
Info@anderson-shaw.co.uk 02476 100476
Anderson Shaw Reference - ASCFL/PPM