Tuesday, 6 February 2018

S-2888-3 MLJ Manufacturer of Paint Application Equipment for Glass Containers (UK)

Business Description:
This Company is a leader in its field, designing, building and installing specialized paint application plant for finishing glass containers for the packaging industry mainly in the beverage and cosmetics industries.  It provides a turnkey paint plant solution for customers from concept to commissioning.  The owner, a highly skilled engineer who is a specialist in his field, wishes to begin the process of retirement. 

Since 1995, the Company has supplied and installed over 50 machines in 20 or more countries across the World on most continents and is a leading player in its sector.  The beverage and cosmetics markets are large and growing as designers demand ever more innovative effects.  The unit sales value of the plant it supplies averages at about $680k but it can be over $1.2M. The business is well known and respected by the key market influencers including the coatings manufacturers.  There are strong prospects for growth supplying machines to existing and new markets and there is also an opportunity to increase service income and sales of spares. 

The business has relatively low overheads, focusing on design, project management, assembly of bought in/specified components and installation. There are 5 full time employees.  The business operates out of a c 600 sq m modern factory unit.    Sales in the 2015/16 Financial Year were $2.1M generating an Adjusted EBITDA of c $220k.  Machines are generally built under contract with stage payments which helps cash flow.

The Transaction:
The owners are open to sharing in ‘above base’ performance, linked to Annual Gross Profit, over the 3 years following Completion.  The owner is prepared to stay on for a period of up to 2 years, on a part-time basis, to handover management control and to assist the new owners with technical and sales issues.

Financial Summary $k

Yr Ended 31 March
Adjusted EBITDA

Other Highlights
Management Team in Place
Years in Business
SIC Classification

Direct All Inquiries to:
                                                       Gottesman Company            
Refer to:  S-2888-3 MLJ
Tel: 212-330-8010     Fax: 646-434-4557
                                              E-mail: office@gottesman-company.com