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Metals Distributor of Stainless, Alloys and Specialty Steel Products

  • Posted on
  • 26
Specifications
EBITDA$163,000
Revenue$2,935,000
Client CodeVEN1008
EBITDA Range under-250K
Revenue Range 1M-5M
Sector Professional-Services-and-Consultancy
Region Southwest-US
Deal Structure Open
HeadquartersTulsa, OK
Description

The company is a metals distributor of pre-processed, saw-cut and random length steel products. In addition to being a supplier of specialty metals, it also provides high-quality custom processing services for multiple industries, including heat treating, grinding, testing, boring, and in-house production saw cutting.

Key aspects
· Specializes in customer-driven inventory management, saw cutting, processing of steel products and customer-focused relationships
· Established, loyal client base with 80% of orders originating from existing customers
· Over 100 years combined experience in metal distribution
· Strategic management of extensive inventory stock allows for quick response to client demand
· Solid reputation for providing high-quality in-demand products and on time delivery
· Excellent inventory management provides for high customer satisfaction and steady gross profit margins

Opportunities
· Investment in replacement of equipment past useful life will increase productivity and add capacity
· Certification of quality program will offer more business opportunities with previously inaccessible clients
· Investment in a website update that offers direct sales capabilities
· Enhance product lines, specifically with aluminum, by securing an integrated domestic mill source

Headquartered
Tulsa, OK

Current markets
The company’s products and services are primarily centered on oilfield companies in Oklahoma. It also provides materials for multiple industries including pipeline, aerospace, and general manufacturing. The company has clients in 10 states.

Real estate
The company leases a 12,000 square foot steel-frame, metal building from an unrelated third party.

Shareholder/owner objectives
One of two owners is seeking to retire and is willing to stay on to ensure a smooth transition. The other owner is interested in continuing on a full-time basis, depending on sale structure. Both owners are open to different deal structures.

Year end
09/30/2018
Internal
$’000
12/31/2017
Tax Rtns
$’000
12/31/2016
Tax Rtns
$’000
12/31/2015
Tax Rtns
$’000
Revenue 2,935 2,974 2,315 2,247
Gross Profit 766 997 676 663
Adj. EBITDA* 163 262 84 108

* Profit before interest, tax, depreciation and amortization (non-cash items)[/cs_table]