The Company is a custom packaging and dunnage solutions manufacturer, providing custom WIP racks, dunnage solutions (foam and plastic), plastic products (bulk containers, sleeve packs, corrugated totes, and totes), sewn bag dunnage, and steel racks. Its flagship, patented product skyrocketed in sales in 2019 before COVID put a temporary damper on sales. This product, which saves customers significant floor space in their facilities, is poised for explosive growth combined with the right buyer/investor. As a reference point, the Company’s 2019 sales were $5.8M with a cash flow of $1.7M. This is a rare opportunity to acquire a small, well-established “value stock” Company that is positioned for massive growth in sales and profits once the veil of COVID has passed.
The Company designs/engineers, prototypes, and manufactures customized packaging and dunnage solutions to serve the automotive, appliance, food service, and other industries. It also provides program management because customer service is the Company’s top priority.
The Company is overseen by an operations manager who handles all day-to-day operations, including accounting, purchasing, production scheduling, and, most notably, sales/account management. The owner has become less involved in recent years and has allowed the operations manager to take over the management of the Company. The operations manager sets the expectations of what needs to be accomplished by his employees and then lets his team do their jobs to make it happen. The owner works 25 hours per week, but this amount fluctuates on a week-to-week basis. His most valuable tasks are handling some key accounts, assisting with long-term strategic decisions, and consulting on unique/important projects.
To maintain current business performance, a new owner could work 15 to 20 hours per week in a semi-passive/passive role, allowing the operations manager to manage the Company or be more heavily involved working hand in hand with the operations manager to grow the Business. The owner would like to sell the Company and is considering transitioning to retirement. The owner is willing to help with a thoughtful transition. The operations manager is aware of and is in support of the sale. He is looking forward to a long future with the business post-acquisition.
An ideal buyer would be well-capitalized and have an existing distribution network to help grow the Company. Buyers will be required to have a minimum of $750,000 in available liquid capital, and preferably industry experience to receive information about the Company.
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The Company currently rents three offices and 16,691 square feet of warehouse space from an unrelated third-party.
Growth Opportunities Include: (1) Add Dedicated Salespeople or Sales Representative Relationships: The Company does not invest many resources into marketing or sales. Historically, the owner and operations manager have personally handled marketing and sales activities. There are no true full-time sales staff members. If the Company were to implement more expansive marketing initiatives and hire a salesperson focused on business development, they could benefit greatly. More specifically, the Company could hire an outside salesperson or sales representative to concentrate on building lasting strategic partnerships. (2) Fulfillment Center/Medical Supplier Opportunities with Patented Product: The Company has not marketed the patented product to fulfillment centers such as Amazon. Fulfillment centers, medical suppliers, and small parts manufacturers require high storage volume for products that must adhere to high standards of quality. Increased penetration into these customer groups will prove to be a boom to not only the success of the patented product and its respective impact on the Company, but it will also have major growth implications for the Company as it continues to do business into the future. (3) Partnerships with Strategic Distributors Utilizing Their Networks: Expanding the Company’s breadth of networking connections would allow for the Company to communicate the value they add to customers more effectively. Building strong and lasting relationships with strategic distributors could also produce opportunities for impact across all industries the Company partakes in. Additionally, increasing marketing efforts of the unique patented product through these connections could prove to bring in much attention to the Company and its resources. (4) Upcoming Automotive Expo: The Company annually attends trade shows in Chicago and Atlanta, and they have had solid networking opportunities there. They attend the shows both to promote the Company’s products and services and to learn more about the industry’s landscape. With COVID-19 moving many of these expos and trade shows online, there is an opportunity to attend more of these events and connect with industry players to bring value to the Company and its future.
Investment Highlights Include: (1) Patented State-of-the-Art Product: This dunnage product effortlessly expands vertically at the touch of a button to increase capacity and to allow for easier loading/unloading, while also reducing the floor space requirements within a plant. Its innovative design creates an all-in-one solution that can be tailored to customer specifications with a variety of available options. No other company is offering this product, and the product is receiving unprecedented levels of interest from both current customers and potential customers alike. (2) One-Stop-Shop: The Company is a true one-stop-shop for all customized packaging and dunnage needs. The Company can meet custom specifications and schedules to provide products and services that meet and exceed customer expectations. They can provide almost any kind of packaging and dunnage solution imaginable: steel racks, sewn bags, plastic corrugated totes, plastic totes, bulk containers, and much more. Not only are they providing products, but the Company also has the infrastructure in place to engineer, prototype, and manufacture all custom orders. The Company has extensive experience in project management as well, providing increased value to the products they assemble. (3) Diverse, Customized, and High-Quality Products: The Company offers an array of various products that can be modified, customized, and custom-made. Operations are set up to be fully flexible and adaptable. Over the years, the Company has gained extensive experience manufacturing packaging for a variety of industries. Because of this experience, the Company can also provide valuable project management services. All products are delivered on time, without defect, at the highest level of quality. (4) Strong Customer Base with Fortune 500 Companies: The Company has built up an impressive customer portfolio, including profitable work from small customers and Fortune 500 companies alike. The Company has global connections with leaders in automotive, manufacturing, and distributing companies from many industry functions. (5) Customer-First and Personable Culture: The Company has built a rock-solid reputation with customers through “extreme friendliness.” When a customer calls, the Company takes care of them directly. Deliveries are always on time, and the Company boasts craftsmanship that is above the competition. Given the Company’s size, managers can cultivate a culture with ease. Employee needs are met quickly and effectively, morale is consistently high between employees of the Company, and managers allow employees the flexibility they desire if their work is completed.
The owner would like to start planning for retirement.
The owner is willing to assist the new owner(s) with transitional matters. The owner would also be willing to stay on to assist the new owner(s) for a period of time dependent upon the tasks required. The operations manager would like to remain with the company long-term.