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ON HOLD - Specialist Tube-Forming & Agriculture Parts Supplier Business

This interesting manufacturing business,  a combine of a business trading for over 100 years and another established in 1999, is a specialist in tube-forming processes, manufacturing components with diameters down to less than 1 mm and in the supply of wear parts for the root crop industry. The company supplies customers across a wide range of industries with aerospace and agriculture being of particular interest.  The vendor is now ready to sell the business as a move towards his next business project.

The owner has no direct involvement in the business, but spread across two locations, the business has some 16 full-time, mostly long-established employees, including a Commercial Manager and 2 Team Leaders who handle the day-to-day activity in the factories. 

In addition to aerospace and agriculture, the company has customers operating in automotive, engineering, leisure, and healthcare sectors.  Over the whole business its top customer accounts for about 8% of sales and the top 20 for around 60%.  The Company has an excellent track record of keeping customers over many years. 

With the ending of the Covid lock-downs there is plenty of scope for growth with a number of interesting enquiries in hand both in the UK and overseas.

The business was significantly negatively impacted by Covid but following significant restructuring during 2023, sales for this year are expected to be £1.1M with adjusted EBITDA of c.£100k. However, sales in 2024 are expected to reach £1.8M, positioning the business to return to and exceed previous levels.  The director’s forecast EBITDA is £340k and £360k for 2024 and 2025 respectively.  The balance sheet net assets as at Nov 23 are c.£100k but are expected to be c. £350k by the end of 2024.

The Guide Price for the shares of the business is £700k and the vendor will provide support for up to 6 months to assist with the handover on terms to be agreed.

Guide Price £700k

Location: East Midlands

Annual Sales: c. £1.8M             Adjusted EBITDA: £340k

Contact Peter Wilson                                  02476 100476

Anderson Shaw Reference - ASCFL/TFAP

Anderson Shaw has offices on the outskirts of Stratford-Upon-Avon and provides business broker and corporate finance services for clients throughout the Midlands and the UK.

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