Custom Industrial Equipment Manufacturer
This is a prime opportunity to acquire a well-established industrial manufacturing company located in Toronto. The company specializes in custom industrial equipment manufacturing and has a strong track record and a loyal customer base.
The company is a Canadian leader in custom industrial equipment manufacturing with over 30 years in the industry. It serves a diverse range of clients, including many well-known companies. Customers choose the company because of its end-to-end design, manufacturing, installation, and follow-on service offering that creates genuinely bespoke products. The company is also only one of a handful of Canadian manufacturers in a niche market where competition is minimal, and margins are high, providing the owners with good cash flow stability.
As companies all across North America continue to re-shore their manufacturing and supply chain functions following the COVID-19 supply chain crunch, demand for products manufactured in Canada will likely grow at an outsized rate over the next decade. This trend is a strong tailwind for the company.
The business has showcased consistent revenue growth over the past five years, with 2023 revenue reaching $2.45 million. The normalized EBITDA for 2022 was $307,254, reflecting the company's ability to deliver strong financial results.
The business operates out of a conveniently located 10,100 sq. ft. facility in Mississauga, Ontario. The building lease extends to 2024 with an option to renew it at a favorable rate until 2026. This location offers easy access to major transportation routes, improving operational efficiency.
For a new owner with a vision for growth, the company offers significant expansion opportunities. These opportunities include ramping up the company’s sales pipeline to add new clients, adding more products around the company’s core offering, increasing add-on service and product offerings like parts distribution, and expanding the company’s design and engineering offerings.
This is a compelling opportunity for an investor looking to step into or expand in the industrial manufacturing sector and continue the legacy of excellence. The price is for a share sale with a normal amount of Working Capital included.