Mechanical engineering and metal processing services provider with extensive machinery of more than 90 workstations and factory premises of more than 60 thousand sqm. Sales of EUR 12 Mio. generated by 95 employees expected to result in EBITDA of EUR 1.2 Mio in 2015. Purchase price (debt free) for the company at about EUR 3.6-4,5 Mio.
Key Investment Highlights
- Turnaround Investment opportunity triggered by bad acquisition of another company.
- The recently started restructuring measures have turned the company operational cash-flow positive.
- Extensive and complete machinery for metal processing worth more than 5 Mio Euro.
- More than 60.000 sqm of factory premises.
- EUR 12 Mio. sales planned for 2015 and growing to EUR Mio. 14,1 for 2016.
- EBITDA planned to grow 75% from EUR 1,2 Mio in 2015 to 2,1 Mio in 2016.
- Company dedicated to supplying custom worked metal parts mainly to printing and precision machinery industries. Established and long-lasting relationship with top customers representing 77% of sales.
- Attractive return/risk ratio: Total investment of EUR 3,6 - 4,5 Mio. for assets worth EUR 9,7 Mio. expected to generate a return on investment of about 26% - 33%in 2015
- Turnaround Strategy: Concentration on sales development and new customer acquisition for better exploiting the high potential of existing production facilities.
- Transaction Structure: Haircut to be negotiated with banks in a debt free asset deal.