Business Description:
With
an Eastern and Midwestern U. S. base of operations, two companies with compatible
and comparable core competencies are offering a potential buyer the opportunity
to consolidate their operations to create an efficient footprint for a
nationwide locomotive mobile repair company.
There are 20,000 EMD (Electro-Motive Diesel) locomotives currently in
service in North America, both companies specialize in servicing this type of
locomotive, which is approximately 30% of the market for diesel-electric
locomotives.
Distribution:
While geographically
contiguous and providing similar services across 20 U.S. States, the two
companies do not compete. The combined company would be primarily focused in the Midwest and
along the eastern seaboard.
Operational
Strengths:
One
company has an in-shop facility for heavy locomotive repairs, while the other has
a facility for painting locomotives. The
combined companies’ assets of trucks, specialized equipment locomotive parts
and inventory are valued at more than $1 million. Collectively, the company’s management and
personnel have more than 100 years of locomotive repair and maintenance expertise. Mutually, the companies have in-shop and
in-the-field, 14 highly trained and skilled electrical, diesel and mechanical
technicians. Since their founding, the
company has performed over 9,000 locomotive field service calls. Common service calls and maintenance for
locomotives include performing running repairs, refurbishing, modernizing,
cleaning, painting, engine change, remote control work, as well as electrical
troubleshooting, modification and re-wiring, and mechanical troubleshooting,
and traction control installation.
The Transaction:
The
owners are open to collaborating with a new single owner toward consolidation
of their culturally and operationally well-matched companies, which offers a
footprint for a nationwide locomotive mobile repair company.
Financial Summary (millions)
|
|||
2019 Est (Oct TTM)
|
2018
|
2017
|
|
Revenue
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$3.6M
|
$3.4M
|
$2.7M
|
Adjusted
EBITDA
|
$944K
|
$623K
|
$887K
|
Other Highlights
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Location
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Financials
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Management Team in
Place
|
Years in Business
|
SIC Classification
|
Midwest &
NEast, USA
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Audited
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Yes
|
20 Years
|
4789
|
D
Direct All Inquiries to:
Gottesman Company
Refer to: S-2972-3 RS
Tel: 718-618-5346 UK Office: +44 (0) 7906786505
E-mail: dmj@gottesman-company.com