Founded in 1961, the Company is the preferred supplier of custom gravel and sand products to utility companies and their construction subcontractors. With an active base of 100 customers at any given time, many customers have been with the Company for over 25 years. The Company operates from a 50-acre gravel pit and has access to two additional pits with 40 acres each. Gravel products are crushed for a broad range of applications such as pipe bedding, drainage, seepage holes, roadways, landscaping, walkways and driveways. Sand product is used to line trench bottoms for utilities and for private projects. The Company produces all grades and types of sand and gravel for residential and commercial applications.
The Company is the only privately-held supplier of e-cigarettes and vaping products among the top 10 brands in the U.S. The brand offers consumers a simple and satisfying, value-based alternative to competing e-cigarettes. The Company’s success is driven in part by its focus on its high quality products at a value price point to core Tobacco users. The brand’s ability to compete on price and product performance has fueled its C-store leadership position in volume-per-location as compared with competitors.
Revenue is on track to increase 19% in 2018 and expected to grow 54% in 2019 due to enthusiastic consumer response to the Company’s new product line launched in June of this year. As of July 2018, demand for the new product line has outpaced its supply in the limited markets where it was made available for retail sale. Management expects 25,000 units of these new products will be sold in 2018.
The Company produces precision components for a variety of end-products including medical equipment and diagnostic devices, filtration and fire suppression systems for aerospace, firearm components, fiber optic tools, and many others. The Company is well-positioned to grow its medical device business even further.
The Company serves regional and global manufacturers across the U.S. with capabilities ranging from prototyping to production, CNC milling, CNC turning, CNC swiss turning, fabrication and assembly. Management has focused on building a first-class business structure to facilitate growth and manufacture superior-quality products. Over the life of the Company, management has continually invested in new machinery and equipment upgrades to meet growing demand, in addition to developing new services and adding capabilities.
The Company operates with 44 employees from a 50,000-square-foot, state-of-the-art facility. There is about 8,000 square feet available in which to add new equipment and capacity in personnel and infrastructure. The principals, who all have operational responsibilities, as well as the Company’s senior management team, are prepared to work with a new owner to grow the business to its full potential.
The Company is an economical one-stop shop for customers who can find design, machining, castings, tooling and painting and superior- quality finished products under one roof. The Company served about 90 + active customers over the past three years, most of who are
aerospace and defense OEMs or suppliers to these markets. There are five long-term agreements with key customers. The majority of sales are to U.S.-based companies, with about 5% from customers located in Europe.
The decline in 2016 was an anomaly due to the loss of one major program due to redesign and completion of a large military program accompanying heavy R&D investment in proprietary foam process. Going forward, the sales of foam products are expected to make up nearly 50% of the total product mix in 2018 and 2019. Accordingly, management expects gross margins to be 40% and higher due mainly to the foam sales but also because the casting and machining projects now in the pipeline are once again higher margin jobs.
The facilities are utilizing about 50-60% of their aggregate production capacity, offering an acquirer significant growth potential. In addition, management has identified several privately-held potential acquisition targets in North America that would collectively form a $150 million + business.
One of North America’s premier outdoor furniture brands, the Company designs and manufactures a recognized line of outdoor furniture and accessories. Products are sold through over 530 stores worldwide and on certain websites. The Company is forecasted to grow at a CAGR of 46.8% and outperforms competitors on pricing for high-quality products while delivering superior value to customers and consumers.
The Company owns several proprietary designs and processes and has achieved a high level of operational efficiency by investing in automation and limiting its product line. Virtually all raw materials come from the Company’s own waste, post-industrial waste, and wide-spec and off-spec resins supplied by resin producers. The owner is willing to stay post-transaction to assist with building a new facility to accommodate significant expansion and will work with a new owner on business development.
The Company provides reclaimed-wood products to prominent national client base of businesses, architects, interior design firms, affluent homeowners and upscale building contractors. The Company has served a large number of well-known retail and corporate clients including Starbucks, Wolfgang Puck restaurants, Holiday Inn, Red Lobster, Bass Pro Shops, Cabela’s, Pottery Barn, Winchester, Remington, Oakley Sunglasses and Costa Sunglasses. Retailers utilize reclaimed wood for store interiors, product displays and gifts, as well as other uses. The Company works with customers to define their needs and help with everything from design and selection to engineering and finance.
In 2018, the Company recently completed the world’s largest reclaimed-wood project. Known for the breadth and superior quality of its product offerings, the Company has completed over 4,000 reclaimed-wood projects. All orders undergo a 15-point inspection process as they pass through the plant, resulting in extremely low customer quality exception occurrence. The Company already has experienced identifying and penetrating prime markets for reclaimed-wood products, as was recently achieved in many states beyond its base location.
The Company is one of the largest stone fabricators in the Southeast and among the top 10 custom stone fabricators in the country. The Company operates a state-of-the-art stone production facility, a custom cabinetry production facility and several showrooms. There is an annual customer base of about 300 commercial and residential builders. In early 2018, management expects to enter into a new contract with a developer that will generate $1.5 million in revenue going forward.