Substantial Plastics Processing Manufacturer With 2nd Tier Management

Established well over 30 years ago, this opportunity is a well-equipped and well-resourced plastics processing business with annual sales approaching £3M).

 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 measured in decades) with no client accounting for more than 15% of sales. They are also spread across a number of sectors, from distribution through to construction.

 Located in the West Midlands, the company operates from a modern 19,500 sq foot premises, and employs 16 full-time staff, with a 2nd tier management team in place.

 Revenues have grown from c £2.1M in 2021 to a forecast of just under £3M in the current year, with a stable gross margin of 40%. The business model is robust and other than (the Covid affected) 2020, it has delivered an adjusted EBITDA in the £600k to £700k range every year since 2021 and is forecast at c 635k in the current year.

 The Guide Price sought by the Vendors for 100% of the shares of the Company is £2.9M.  The business will be sold on a debt free, cash free basis to include a Net Asset Value at Completion expected to be c. £750k

 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.