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Well Established Lucrative Aluminum Manufacturing Business For Sale

Vancouver Island, British Columbia, Canada
Asking Price:
$4,500,000 (CAD) Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$6,250,000 (CAD)
Cash Flow:
$769,500 (CAD)

This well established and highly regarded manufacturing business gained prominence within the industry as a result of a line of custom made, high-quality, specialized products. Due to exceptional product performance and innovative design techniques the business has grown to include a national customer base, while retaining a very loyal, local following as well.

The company specializes in 3 product lines plus a small custom segment. Each specialized product lines can be expanded by servicing more private and government entities throughout BC, Alberta and Washington State.

The owners have effectively tested and proven their place in the market which has allowed them to be an industry leader since the mid-90’s. The business has always placed high value on the importance of the skilled labour component and has harvested and maintained a long-tenured work force of around 50 employees, resulting in the business being a sought-after employer. Through investment in production technology, the company can increase production with limited additional labour. This business has the capacity to increase production 60% - 100% with the addition of just 10 - 12 new position fully in the current space fully utilizing its production technology.

In addition to fabrication, custom design and product manufacturing, the company possesses several expansion opportunities through its intellectual ownership of over 75 product designs of which 10+ could be mass produced and shipped throughout North America through the expansion of a dedicated production facility.

The business operates out of 2 locations adjacent to each other, both owned by the principles. The main location is 5 acres of which 60% is used for the business and the other 40% could be developed to build a specialized facility for mass production. The second location uses a 6,000 sq ft building and a small secured outside storage area.

The business has solid management in place. The key manager, in his early 40’s, does have a small ownership position and is committed to the company long term. The principal owner dedicates 6 – 10 hours/week to the business, and his partner does casual work as desired. Both positions are managed by other staff when the principles are away. They travel for periods of up to 8 weeks at a time.

The principles do have 2 other manufacturer business interests on the adjacent property that they intend to sell in the next 6 months to 5 years as they wind down to full retirement. Both would be complimentary to this business. The buyer of this company will have first rights of refusal to acquire these 2 other entities. Either entity would add substantially to the EBITDA of this business.
Located on Vancouver Island, this business services a vast spectrum of clients throughout British Columbia and Alberta, and with the current value of the Canadian dollar, the US market demand has good opportunity.

This business would continue to thrive under the ownership of a driven and ambitious new leader. The new owner will reap the lasting benefits of a very firmly established, customer-retention focused operation.

The weighted 5 year weighted normalized EBITDA is $769,450 (5-year historical and current).

YE Revenue August 31; $6,207,000 - 2021; $5,990,000- 2020; $6,500,000- 2019; $6,218,000 - 2018; $6,395,000- 2017.

Normalized EBITDA $564,000 - 2021; $813,000 - 2020; $1,083,000 - 2019; $796,000 - 2018; $422,000 - 2017.

Asking price is $4,500,000 including $2,000,000 inventory/WIP

Real estate also available. $5,400,000 for 5 acres. 8%+ ROI. Several rental units to other parties on this site.

Contact Michael Naprawa at IBC Business Brokers Inc. for more information at or e-mail

Property Information

Real Estate:

Lease

Lease Terms:

Optional as property is owned by principle of business

Leasehold Rent:

$330,000 (CAD) per annum

Location:

High profile low cost facility. Located in high traffic highway location in small community.

Premises Details:

28,000 sq ft. Main buildings on 5 acre parcel. Additional space on adjoining parcel. 2+ acres can be developed on main premises

Size in square feet:
3 of 5 acres used

Business Operation

Expansion Potential:

This business could grow 200% - 400% in 2 -5 years for the new owner that wants to invest into the growth through its intellectual ownership of over 75 product designs of which 10+ could be mass produced and shipped throughout North America through the expansion of a dedicated production facility. This current owner does not have the desire to expand the business which has hindered its growth substantially. The vendor is willing to assist in funding a qualified buyer if the buyer desires to expand.

Competition / Market:

There is limited competition. Because of the location of this business, there is a geographical benefit for labor that give it an advantage, and transportation which is a slight disadvantage. As labour is the biggest expense, that advantage far outweighs the transportation disadvantage. This business has a large local clientele and has served international clients.

Reasons for selling:

Semi-retirement

Trading hours:

Monday - Friday 8:00 - 4:30 pm

Employees:
50
Years established:
25+ years

Other Information

Support & training:

All management in place. Additional training required as needed.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

Up to $1.5M for qualified client assuming buyer is investing similar unencumbered cash.

Furniture / Fixtures value:
$1,100,000 (CAD) - included in the asking price
Inventory / Stock value:
$2,000,000 (CAD) - included in the asking price
Relocatable:
This business can be relocated.

Contact iBC Business Brokers Inc

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