Industrial Coatings and Specialty Fabrication Business

Midwest US
Construction; Industrial & Manufacturing
Client Code: BN000034754
Revenue (Forecast): $40,000,000
EBITDA (Forecast): $8,000,000

Integrated industrial coating and precision fabrication business providing services and parts to world-leading manufacturers of construction, agricultural and transportation equipment for use in the harshest environments. Existing excess capacity is used to manufacture and sell its own branded products direct to consumers and through dealers. New management team brought on in 2019 has driven growth and diversification.

Key Aspects

• Strong customer diversification through the addition of new, blue-chip OEMs and Tier 1 suppliers over the last two years; aggressive targeting of Tier 1 suppliers due to shorter DSO and enhancements to diversification

• The “GO TO” specialists when other coating processes fail

• Led by industry experts with bench strength to scale 5 plus new locations in the U.S.

• Approved supplier to major OEM’s which are requesting additional services including the opening of new co-located facilities

• Proven ISO 9001:2015 certified process to which staff are highly trained and held accountable

• Significant ongoing investments in productive capacity and ERP systems to improve output and efficiency through better data collection and use

• Skilled non-union workforce with a great family-oriented corporate culture

• Cost advantaged rural locations with the average employee labor rate being 25% less than the national mean

• Proven engineering capabilities that demonstrates an ability to consistently adapt and deliver processes and products to meet the ever-changing needs of the market

• Recently completed a 100,000 square foot state-of-the-art coatings facility in 10 months; currently running at 60% capacity for 20 new customers with room to grow

• >95% on-time delivery

Opportunities

• Cornerstone acquisition for roll up of a fragmented industry with over 4,600 domestic participants in the coatings industry

• Potential to open 6 additional facilities with long term supply agreements with well-known, multi-national corporations

• Growth prospects for fabrication and coating of sub-assemblies to an expanding customer base; including possible addition of stamping equipment

• Establishing a distribution channel for proprietary agricultural equipment that is currently sold direct-to-consumer

• Expansion beyond the current 21 dealers for branded manufactured transportation products

• Excellent fabrication capabilities to expand production of ancillary products sold through its dealer network

• Expand service offering to include other coating methods such as flame spray, anodizing or galvannealing

• Installation of robotic welders and painters to reduce labor cost while simultaneously improving quality and efficiency

• Coating source for manufacturer of conveyor systems for leading e-commerce company

• Negotiating opportunity to assemble tractors and supply components and implements for a well-known international company

Headquartered

Southeast and Midwest US

Current Markets

seize these opportunities and defer retirement while awaiting the return on that investment.

Current Markets

• Industrial coatings in the construction, agriculture and transportation equipment markets

• Fabrication of transportation and agricultural equipment sold direct to consumer and through a national dealer network

• Contract fabricator for a cutting-edge healthcare equipment company.

Real Estate

• All real estate is affiliated-owned and can be included in the sale or leased from the owners

• Modern headquarters and fabrication facilities with extensive room to grow near a major city