This company produces a line of patented and non-patented plastic injection mold parts for use in the irrigation industry. The products are engineered for industrial applications and include specialty fittings as well as standard fittings. The products are designed for contractor use but are easy enough to use by the everyday lay person.

They own the six (6) molds and tooling for production of some 100+ parts. Parts production is currently being subcontracted to several area molders and is done on a part-time basis. An additional asset is their vendor numbers with the major big box retailers. The owner estimates that by producing the parts in-house, an additional 67% of manufacturing costs could flow to the bottom line. Gross sales for the last 4 years have averaged just under $400,000 per year. Seller’s Discretionary Earnings (SDE) for 2014 was approximately $176,000 if the products were manufactured in-house. 2015 sales volume is ahead of 2014.

This business has tremendous growth potential. Currently sales are limited to four (4) states and a few other retailers of a few select parts. They have been given vendor numbers for several other large box retailers and need to actively pursue these existing contacts. The insert fittings for polypipe are not used in all States such as Arizona or California and a concentrated marketing effort to some of the larger specialty contractors in those states could accelerate the eventual acceptance and usage. They do have some limited distributors representing their products to contractors and independents and this could be expanded as well. There are some other competitors in the market but none has the reputation for the quality of parts that this company possesses.

Posted Apr 17, 2014

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