Kitchen-Bath: CNC Fabricator
Business Description
Company is a 50+ year old well-established integrated CNC manufacturer that designs, cuts, fabricates, and installs natural and engineered stone countertops, showers, fireplace surrounds and other custom stone fabricated products into higher margin retail, high-end custom fabrication and strategic relationships with the best design firms.
They serve 4 market segments in the greater Dallas Fort Worth market: 1) homeowners kitchen-bath remodeling, 2) High-end residential custom builder and remodeling contractor, 3) Production Builders with long term contracts, 4) Custom home builders. The business continuously improves its manufacturing and customer service by smart capital investment creating an integrated customer, design, manufacturing, and installation experience while achieving one of the shortest lead times in the industry. The Company’s investments in automation, including robotic CNC systems and laser templating, have created an industry-leading scalable, labor-efficient sales and production model with $12-14M annual capacity. Designs feature precise vein matching, custom fluting – complete with turnkey installation.
This business best fits a home services business (especially kitchen/bath) wanting to add a new high-end product offering with new cross-sales for their existing services.
Well-diversified, serving ~250 active customers with top 10 customers ~40% of total sales and largest customers (varies by year) ~17.8% of sales.
An experienced Production Manager coordinates production and installation to ensure the job can be done effectively and efficiently. Sales Manager oversees new and established customer relationships, leads the sales team and drives business development.
Business has well-defined operating systems, processes, and procedures and an excellent safety record. Employees are well-experienced with long tenures in the industry. The owner has invested in new equipment and has increased the company’s capacity, capability and process control. Productivity, costs, and turnaround have dramatically and continuously improved.
Owner works full-time in the business providing overall strategic direction and building relationships with builders/developers. The production and sales team can handle all aspects of the business when the owner is on vacation.
Owner feels that a major advantage over competitors is the experience, professionalism and seniority of their loyal, dedicated employees and independent contractors. Employees and installation crews are professional, team-focused, and a major asset to the company.
Company receives repeat business and referrals from a network of trade partners, builders, exclusive fabricator relationships for developments and design centers, realtors, SEO and web-generated leads, company website, and construction professionals, plus a large installed base of customers. The owner estimates that the business is operating at 25-30% capacity and has implemented staffing/capital expansion plans to achieve $12-14M annual sales. The business could grow MUCH faster by adding salespersons and scaling into other distribution channels (such as Home Depot/Lowes) focusing on countertop custom fabrication with fast turnaround.
NOTE: SELLER PREFERS TO SELL TO A STRATEGIC PURCHASER WITH EXISTING STONE MANUFACTURING OR RELATED STRATEGIC INDUSTRY HOLDINGS (EG CABINETS, FIXTURES, PLUMBING, TILE, ETC). OTHER PROSPECTIVE PURCHASERS MUST HAVE STONE FABRICATING SERVICES INDUSTRY OWNERSHIP or SENIOR MANAGEMENT EXPERIENCE + MINIMUM $2,000,000 LIQUIDITY AND PROOF OF FUNDING TO QUALIFY.
Purchase Price: Asking price for the assets of the business is NEGOTIABLE. Seller will consider financing up to 10% of the price. SELLER PREFERS TO SELL FOR ALL CASH. The assets include Net Working Capital valued at $775k and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $1,300k.
Facilities
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Competition
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Growth & Expansion
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Financing
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Support & Training
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Reason for Selling
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Company is a 50+ year old well-established integrated CNC manufacturer that designs, cuts, fabricates, and installs natural and engineered stone countertops, showers, fireplace surrounds and other custom stone fabricated products into higher margin retail, high-end custom fabrication and strategic relationships with the best design firms.
Well-diversified, serving ~250 active customers with top 10 customers ~40% of total sales and largest customers (varies by year) ~17.8% of sales.
