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ACQUISITION
OPPORTUNITY D-1715
DISTRIBUTOR
OF SPECIALTY WIRE & CABLE
This steadily growing Company
is a broad line stocking distributor of wire, cable and tubing.
It specializes in hard to find items and provides a significant amount
of value added service. These services include processing
(cutting, dyeing, stripping and marking) as well as using extensive
industry knowledge and an in-house cross-referencing system to help
identify products from different manufacturers that meet various
military and commercial specifications. The Company has
electrical engineers on staff to design custom wire and cable
products. The Company also keeps a large number of customer
drawings on file as well as military specifications related to the
Company’s products.
Customers are made up of
governmental agencies, subcontractors and manufacturing companies and
other well known companies. Due to the focus on service and
stocking of specialty products, the Company is able to maintain a much
higher margin than industry average. In 2000, the Company had a
“spike” in sales and earnings due to a very large order at a lower
than normal gross margin.
The Company has an
experienced staff, including a strong management team willing to stay
on with new ownership.
INVESTMENT HIGHLIGHTS:
Excellent
gross profit margins ranging from 50-56% in recent years
Steady
growth in sales and profits since inception with a limited sales and
marketing effort
Strong
net profit margins ranging from 28-33% in recent years
Strong
management team in place and willing to continue
Extensive
customer list; large percent are repeat customers
Well
established,
excellent reputation as source for hard to find items and “problem
solver”
PURCHASE PRICE:
The business is being offered
as an asset sale, free and clear of all debt except trade payables to
be assumed by Purchaser, at $3,600,000.
Included
in the sale: Accounts
Receivable, Inventory, Prepaids, Trade Payables, Fixed Assets,
Intangibles
FINANCIAL SUMMARY ($000):
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