On offer an established and very profitable business specialize in the design and the manufacturing of a wide range of plastic products/components extensively used in the mining sector, construction, agriculture and retail industries. These products & components includes amongst others mining explosive safety devices, mining explosive packing designs, hydroponic vertical farming systems, connect-IT ranges, wide range of plastic injection mould products, ant bait stations, fly busters, etc.
The current Owner started the business over 40 years ago and has grown it into a large manufacturing operation using the latest modern computerized plant & manufacturing machines to manufacture plastic products/components.
The reason the Owners want to sell, they want to retire and giving a new Owner the opportunity to expand and grow it further, especially to benefit with a BBBEE owner.
This manufacturing business on offer is in the top three in SA with the manufacturing of a wide range of plastic products/components with a loyal customer base built over the years. This is an exceptional opportunity for a Buyer to either enter this lucrative market, or to expand existing operations.
The business is centrally located in Gauteng East allowing the business to source customers from a wide geographical area in the mining, construction, agriculture and retail industries. The business has ten highly skilled full time key staff and additional part time employees are also contracted when needed. The staff is competent and fully trained in all aspects of the business and does not belong to any unions.
The manufacturing business has a very large asset base of plant & machinery, workshop equipment, two vehicles as well as a wide range of office equipment valued at R8,120,000 at reasonable 2nd hand value. The wide range of moulds/dies are valued at about R1,500,000. The market related value of these moulds and dies is estimated at about R20,000,000.
The selling price of this plastic manufacturing business on offer is R11,628,00.
Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation) amounts currently to R3,724,000 per annum or about R310,000 per month. This offers an excellent ROI of 32% and a payback period of 38 months notwithstanding the high asset base. The EBPITD figure stated including a rental allowance for R123,000 per month.
All Plant & Machinery, Workshop Equipment, Vehicles and Office Equipment are in very good condition and regularly maintained. All assets are owned with no lease agreements. A full detailed asset list is available to serious buyers.
Also available is the Commercial Property/buildings for R11,400,000 situated within the “Industrial Area” where no empty stands is available anymore over and above the business selling price of R11,628,000. The size of the land is 4,000 sqm. and the two buildings occupy 3,500 sqm. The Owner is also willing to enter in a rental agreement with a new Buyer at R120,000 per month with an option to buy it later.
The very large buildings consists of two parallel buildings next to each with extremely neat Workshops, Office areas, kitchens, resting rooms, ablution facilities and Storage and dispatch areas. Also plenty of covered parking adjacent next to the two buildings.
The Owners is involved on a day-to-day basis, overseeing operations , etc. They will also ensure and provide adequate training.
If you are passionate about this reputable plastic manufacturing business opportunity that come available on the market, than this might be the business opportunity for you to grab.