Listing ID: 80439
Profitable and high-quality industrial plastics recycler for sale. This company focuses on transforming recyclable products into premium-grade polymer materials for injection molding, blow molding, extrusion, and compounding clients. The polymer industry is a significant contributor to the nation’s economy and is the third-largest manufacturing industry in the U.S., behind petroleum and automotive. As enterprises face increasing virgin prices, more turn to recycled additives to reduce costs and maximize profits without sacrificing performance.
This company specializes in servicing their industry through Size Reduction, Pelletization, and Program Management for Industrial enterprise accounts. They see Size Reduction as much more than shredding and grinding. It encompasses advanced metal removal technologies, paper removal and other contaminates elimination. Pelletizing commodity and engineered grade materials are enhanced with the combination of strand, underwater, and water ring pelletizing systems.
This industrial processor serves customers participating in many different industries, which have been carefully selected based on their future growth prospects, cyclical sensitivities in the economy, and endurance as bellwether markets. Core to their customer base is a national marketplace reliance on these firms for everyday services. They are considered “essential companies” to the U.S. economy experiencing longevity and exceptional growth. Over the years, their customers have come to rely on the expertise and reliability represented to the following markets:
• Supply Chain Enterprises
• Environmental, Social & Governance (ESG)
• Waste Management
• Industrial Material Handling
• Manufacturing & Molding
• Packaging & Food Container (Grocery & Food industries)
• Medical & Pharmaceutical
• Consumer Product Manufacturers
• Automotive (Manufacturing & Repair)
• Construction (water management & Industrial roofing replacement)
With the polymer industry still surging, there is no shortage of clients and industries to target. Organic growth from core customers alone presents a minimum of 15% – 20% annual growth potential. This allows more significant emphasis on customer services, core competency, and attention to expansion with little focus on sales. There are no imposing threats of obsolescence or environmental resistance within their revenue streams or materials.
This business was started by the owner in 1996 with the goal of helping his plastic molding connections reduce material costs by using high-quality recyclables. Currently 28 dedicated, full-time W2 employees support this business with a proven and notible Plant Manager. They are centrally located in the Greater Southeastern U.S. operating from 50,000 SF of manufacturing and office space, ready to double in size to accommodate demand. Expansion to the West Coast, Northeast, and Midwest are in planning for current national customer initiatives.
You do not want to miss this opportunity. With recent investments in new equipment and demand for processing continuing to surge, this is a unique opportunity for an owner to take this company to the next level. This opportunity is excellent for a strategic buyer to add this location, equipment, and existing customers to their current business base or fulfill a national strategic plan. This company has spent the past three years re-tooling its processes, sacrificing short-term performance for long-term expansion, which is taking off.
The owner is willing to stay for a period to be determined through the transition phase of the business.
- Asking Price: $5,500,000
- Cash Flow: N/A
- Gross Revenue: $2,700,000
- EBITDA: N/A
- FF&E: $1,930,938
- Inventory: $10,381
- Inventory Included: Yes
- Established: 1996
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:49,500
- Lot Size:N/A
- Total Number of Employees:28
- Furniture, Fixtures and Equipment:N/A
Description of the facility: The facility is well-positioned in the Southeast and serves customer requirements on a national level as well. Manufacturing facility totaling 49,500 SF with 30,000 SF of production space. All center-block interior with brick exterior construction with 1' thick walls and 8" thick concrete floors (16' at expansion joints and support beams) equivalent to load-bearing floors designed for 3,000 psi. Facility power - 460 V-AC/ 1200 Amp main breaker. Offices: 3,491.6 sf. Laboratory & compliance office. Large conference room with table & seating for 20. Dedicated air-conditioned computer room. Breakrooms for labor & office staff. Bathrooms; 2 upstairs for offices, 2 downstairs for offices, and 2 in the manufacturing area for labor. Dedicated maintenance & fabrication shop. One 168,000 pound continuous circulating outdoor silo with overhead pneumatic feed system. The facility is separated in half, joined by an oversized retracting door. There are five dock doors on the East end of the rectangular building (4 dock-height & 1 drive-through) and four on the west end (dock-height), each side with independent truck courts. Plant-wide camera system array, set up for remote & on-site access. Over-head wet sprinkler system with two zones tested annually. Building Exhaust system: 4 - 42" wall mounted updraft ventilation fans with louver & hoods in four corners of the building; also 3– 24" updraft roof fans & 8 – 12" updraft roof exhaust fans. HVAC Systems: Manufacturing Area – is equipped with HVAC winter-summer recirculation system recirculating air plant-wide every 20 minutes to remove volatile fumes; 2 Office areas have independent 1.5 Ton A/C systems upstairs & downstairs each, with separate controls. Water cooling with 75 Ton tower system with 1.125 BTU cooling capacity. The current owner began as a manufacturer's representative for over 32 plastic processing & metal fabricators. He started a concept company with the single goal of helping his plastic molding principals reduce material costs with high-quality recyclables. Eventually, as more clients aligned with his strategy, the concept became a reality with consulting services, recyclable plastics supply, and a customer-first philosophy. In 1996, from these original concepts, they focused on transforming recyclable products into high-quality grade polymer materials for injection molding, blow molding, extrusion, and compounding clients.
The current owner began as a manufacturer's representative for over 32 plastic processing & metal fabricators. He started a concept company with the single goal of helping his plastic molding principals reduce material costs with high-quality recyclables. Eventually, as more clients aligned with his strategy, the concept became a reality with consulting services, recyclable plastics supply, and a customer-first philosophy. In 1996, from these original concepts, they focused on transforming recyclable products into high-quality grade polymer materials for injection molding, blow molding, extrusion, and compounding clients. The company is now honored to supply recycling services to some of the world's largest supply chain, pooling, manufacturing, and other recycling companies in North America. Companies that have come to rely on their expertise, enjoy customer centric service and satisfaction. All by strategically selecting industries, customers, and markets to target.
Expansion of the building will directly spur production and revenue growth. 2021 Price Increases have started: Effective Q2, 2021, a price increase was implemented among 2 of the firm's largest customers, effectively increasing revenue & profits by $255,000 annually. Effective Q3 2021, an additional price increase for a third top customer yielding $ 25,000 to the bottom line for a total increase of $280,000. With its unique ability with metal & contaminate removal, one of their largest customers has asked them to expand their processing capability for additional processing this year and next to accommodate substantially more material. They have already responded by making changes and adding new equipment, which will add another $221,000 in revenue.
The company was started in 1996, making the business 26 years old.
The transaction will include inventory valued at $10,381, which is included in the suggested price.
The business has 28 employees and resides in a building with approx. square footage of 49,500 sq ft.
The property is leased by the company for $13,600 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. Nevertheless, the genuine factor and the one they say to you may be 2 entirely different things. For instance, they might state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competition, recent reduction in incomes, or an array of various other reasons. This is why it is very important that you not depend absolutely on a vendor's word, but rather, use the vendor's answer together with your overall due diligence. This will repaint an extra sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans so as to cover points such as inventory, payroll, accounts payable, etc. Remember that sometimes this can mean that earnings margins are too tight. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be satisfied or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in brand-new clients? Most times, businesses have repeat consumers, which form the core of their daily earnings. Particular variables such as new competitors sprouting up around the location, road construction, and also employee turn over can impact repeat consumers as well as adversely influence future incomes. One vital thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business regularly, the greater the chance to construct a returning consumer base. A final thought is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Just how might the neighborhood average home earnings impact future income potential?