High Cash Flowing Plastic Extrusion Business - SOLD

JANUARY 20, 2022

This long-time family-owned plastic extrusion business has been a model of consistent performance over its 45+ years of extruding parts. That lengthy and impressive history is due in part to the business being managed by the same family members for more than the last 40 years. The owners are now at retirement age, and they look forward to retiring after selling the company and overseeing an orderly transition to new ownership.

The business occupies an attractive late model 36,875 square foot located on 7 acres in a desirable community in northeast Indiana. The business boasts easy access to major freeways. The real estate, owned by the sellers, may be leased with a favorable rent structure or purchased in a separate transaction.

The business is a two-shift operation employing an experienced, skilled, non-union 12-person work force. The company extrudes a wide variety of parts and tooling for businesses in virtually every industry segment. Competitive advantages exist in pricing and a multitude of capabilities provided by the wealth and variety of the company’s vast stable of machinery and equipment which have a fair market value in excess of $700,000.

The business has an unparalleled commitment to customer service and to fabricating high quality parts and tooling exactly to specifications and of course shipped defect free and on time. As one would expect, the company enjoys a significant amount of repeat business. The reputation of the business is so strong that a steady flow new customers are generated through referrals from current customers thereby eliminating the need for any meaningful sales and/or marketing efforts.

For a growth minded buyer, there would seem to be obvious growth opportunities by expanding the customer reach beyond the 500 miles radius in which most of the company’s current customers operate.

For the past five years, the business has had average revenues of $2.5 million and a (weighted) average annual SDE (the historical, normalized cash flow to pay an owner-operator and service debt) of $230,000. The business is being aggressively offered for $880,000, a favorable 3.8x multiple of average SDE. The offering price includes the above mentioned $700,000 of machinery and equipment. The sellers contemplate an asset sale with the sellers retaining cash and A/R while retiring all liabilities. For qualified buyers a meaningful seller note will be available. Additionally, the sellers are willing to adjust their post-close tenure to accommodate the transition preferences of the successful buyer.

For more information on this very attractive niche business opportunity, please contact Steve Kandt ([email protected]).