CNC Machining and Component Manufacturer

CNC Machining and Component Manufacturer

CNC Machining and Component Manufacturer
Location: Southern Ontario

Industry: Manufacturing & Industrial

With over 25 years of experience, this is a reputable original equipment manufacturer located in Southern Ontario. The business has an industry agnostic focus with clients in the automotive, defense, oil & gas, mining and entertainment industries. With its curated CNC machine selection and skilled labor force, the business is capable of prototyping and custom precision manufacturing. The company has built a reputation for quality and timely delivery. Consequently, the business has a loyal book of clients and enjoys high referral rates. Investment in innovative machining practices has helped the business generate strong profitability, with an average 5-year adjusted EBITDA margin of 19%. Majority of the business’ supply chain is based in Ontario, which allows short production cycles. Management believes that strong opportunities for growth exist through additional certification and diversification into other industry verticals. The business has additional capacity to expand production and sustain this growth without additional capital expenditure.

Growth of the CNC and precision machining industry is driven by consumption and manufacturing demand. The Canadian manufacturing index exhibited an upward trend in the last quarter of 2019. A low interest rate environment and a positive outlook for construction will generate tailwinds for the CNC and precision manufacturing industry going forward.

Current sales levels are utilizing about 50% of current capacity due to improved efficiencies of modernized equipment.

This is an excellent opportunity for a private or corporate buyer looking for a diversified equipment manufacturer with CNC capabilities and an established book of clients to immediately benefit from available production capacity.

Revenue: $2,595,000

EBITDA: $338,000

SDE: $388,000

Employees: 17

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