Private equity sale >50% for $3m, cash out.
Manufacturer company, R&D and production of coating chemicals, paint and varnish materials for construction, industrial and special purpose.

The complete cycle of works: from the development of new materials and manufacturing technologies to its own sales and delivery of finished products to customers.
Premium product segment is the next target.
The product line might be qualified for export.

Licenses, certificates, patents.
Three brand names.
Since 1992.

Product range: special-purpose materials for civil and defense industry, bulk materials, liquid glass, facade paints, oil, water-dispersed, enamels, lacquers, primers, stains, fillers, rust removers, protection and restoring compositions, antiseptics, solvents, adhesives.

Turnover $6m. Gross margin 25%. ROE>8%.
Profit maker, "milk-cow", net profit 8% is stable, even in crisis, whilst the peers-competitors operated with losses.
Potentially, 5 times a growing business.
Economy of scale as a plus.
No Debt. Capital Assets as equipment and real estate of market value $3m is the solid collateral for investments.
Good premises, B class leasehold warehouse.

This is well organized and managed perspective business.
Still, ageing owners-managers shall to retire but assist during transfer period.

Business has growing market share, strong contracts base and competitive advantages.
Now, the current volume of orders more than double existing production capacity.
Minor upgrade and additional production capacity will increase sales by more than 5 times.
Plenty of space for expansion inside.
2 hectares additionally available nearby.

Total project capacity is 13,000tpy from 1st-plant on 5,000sqm freehold and from 2nd-plant on 1,200sqm leasehold.
Currently, 100 staff produces 6,000tpy during 1 shift.
Capacity to accommodate further growth up 100%, if during 2-3 shifts.
The growth up 500% is available by modernizing.

Posted Dec 23, 2009

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