MergerPlace

Sawmill and Pallet Manufacturer

Colorado


  • Asking Price: $1,800,000
  • Gross Income: $2,998,156
  • Cash Flow: $218,109
  • Real Estate: Not Disclosed
  • Inventory: $500,000
  • FF&E: $1,448,594
  • Listing ID: #200979
  • Established: 1977
  • Employees: 22 FT

Business Description

Third generation saw mill that was originally built to cut construction lumber, posts and long poles. In 2007, the owners purchased a pallet nailer to make use of short lumber and provide pallets for a local manufacturer. The pallet side of the business began to grow and now pallets are approximately 90% of the production. The mill continues to custom cut larger timbers and cants for local builders and has the only mill in the area capable of cutting timbers up to 26' in length. The owners of the business have developed a siding product called Chink-A-Log which can be produced with a third mill referred to as the planer mill.


Business Details

Primary Business Category: Manufacturing - Wood Products
Location: Colorado

Company Information

Year Established: 1977
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 22 FT

Financial Information

Asking Price: $1,800,000
Gross Revenue: $2,998,156
Cash Flow: $218,109
FF&E: $1,448,594
Inventory: $500,000
Seller Financing Available: Yes

Property Information

Facilities:

The mill is located on approximately 23 acres adjacent to the major highway for the area and is adjacent to the boundary of the city. The mill is located in the county and water is provided by a privately owned artesian well. Facilities include a modern and spacious office with a residence and garage built into the lower level. A large building houses the original big mill, a modern steel building houses the newer mill and pallet nailer. An older building houses a separate workshop and dryer for finished pallets. A newer steel building houses the planer mill. A smaller modern steel building houses the pellet mill and equipment storage, adjacent to the sawdust handling system which includes a dryer, grader, storage and loading hopper for the waste. There is an older open side building for large truck parking. The facilities include a scale, log yard, ample covered storage area for cut lumber, cants and a large yard for completed pallets and waste storage. The mill is located on a natural gravel bed, so wet weather is usually not a factor affecting production. The property contains plenty of room and ample building space to accommodate future growth.

Growth & expansion opportunities:

Strong potential for growth in the pallet business. The business is located in a rural area, so transportation of the product to new customers is a consideration. Potential for growth includes additional production of construction timbers, producing cants for other mills, cutting stringers and deck boards for other pallet manufacturers, and the production of Chink-a-log siding. The Chink-a-log siding is currently manufactured in the planer mill. The planer mill can be re-configured to produce more pallet wood or other products.

Competition:

No competition in the immediate area. Most pallet manufacturers purchase cut lumber from mills and are at the mercy of the producer. This company controls their production from the stump to delivery of the final product. This allows the business to minimize waste and cost by only cutting their lumber once. They do not have purchase standard size lumber such as eight foot 2X4's and re-saw the lumber to make it fit a pallet. The business controls the quality of the lumber which allows them to minimize warped or twisted boards which can delay production. As manufacturers continue to automate their production lines, the demand for high quality pallets grows also.

Reason for selling:

Owners ready to retire.

Support & Training:

Will train for 4 weeks @ no cost. The primary product of the business is the production of modern, dimensionaly accurate pallets that are used by manufacturers with automated production lines. Modern production lines demand good quality pallets that can be manipulated by robots and can move down the production line without jamming the system. Older or used pallets with broken boards will jam these automated systems. This company produces first class pallets for their customers. The business also has a drying kiln that allows them to meet ISPM 15 Certification of pallets for transportation overseas. The mill also has older customers that periodically order large timbers for custom construction. The mill has several trucks and offers delivery service for some customers. The mill has a wood pellet mill and has in the past turned its waste into heating pellets. At this time, the mill sells all of its waste to a large manufacturer. The mill sells bark to a company that bags it and sells it for landscaping. The business occasionally bids for a timber block and will contract logging. Saw milling is a skilled undertaking. The operator will need to learn and understand all phases of the business from procuring the logs to operating the mill, manufacturing pallets, sales and transportation.

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Business Listed By:

Joe MacGuire

Murphy Business Brokers