**Established Supplier of Proprietary Petroleum Products & Testing Laboratory**
This is a unique Company located in Southeastern Michigan that develops, markets, distributes and tests advanced, petroleum and synthetic-based energy conserving materials. Established over three decades ago, this Company began as a supplier to the automotive industry. After purchasing a sophisticated machine for testing materials for internal R&D purposes, the Company also began doing third-party testing for an array of clients (including Fortune 500 companies) and industries including automotive and military. The Company is accredited to the current automotive ISO 9001 quality standard, and the Lab is ISO/IEC 17025 accredited.
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The Company operates out of a single facility valued at $125,000. The Facility is a total of 7,246 sq. ft. which is comprised of 1,813 sq. ft. of office space, 833 sq. ft. of lab warehouse space and 4,60 sq. ft. of main warehouse space.
Growth Opportunities Include: 1) Grow Retail Channel – Recently, the Company has begun developing marketing strategies and product variations in order to reestablish the Company into the retail market. There is strong demand from the retail market and the Company’s products can be priced competitively in this market. 2) Capitalize on Distribution Network – Based on customer feedback, it is apparent that the Company is not fully capitalizing on its distribution potential. Many existing customers are more interested in consolidating their vendors than obtaining the lowest price on every product. By bringing back some of the products the Company used to carry and sourcing new non-lubricant products, sales could be increased substantially. 3) Grow Laboratory 3rd Party Business – Beyond custom testing and fixture design, the lab also provides accredited ASTM standard testing, along with a wide range of associated tests. 4) Additionally, the Lab is developing intra-laboratory relationships to maximize its testing income as well as to be able to market its services as a complete package by utilizing other labs testing capabilities to complete tests the Lab cannot do onsite.
Investment Highlights Include: 1) Two distinct but related businesses - The Company’s lab and material sales arms operate independently but taken together offer the combined entity a number of benefits and opportunities • Greater diversification in terms of customers and revenue sources from products and services • The Lab can serve as an internal R&D department to the Company, without cutting off all opportunities to serve third-parties • Products developed in the Lab can very quickly be marketed and sold through the Company’s distribution system and many business contacts 2) ISO 9001 quality standard accredited – The majority of Company’s customers are in the automotive industry. This means that they use the PPAP process, which is a system for controlling quality and reliability by completely controlling all the inputs required for a manufacturing process. Getting a product “PPAP’d” is an extremely involved, costly, and lengthy process. This means that once a product goes through the process, it is highly unlikely to be switched out for another product, creating a high barrier to entry.
The former owner has passed away and the equity of the Company has been transferred to a trust to be sold by designated fiduciaries.
The Business is being run by General Manager and long-time Warehouse Manager.