Vertically Integrated Manufacturer and Distributor of Home Building Hardwood Products
Listing: #FW00019Geoff Warrell
Broker | Fort Worth
About this Business for sale in South Central US
Vertically Integrated Manufacturer and Distributor of Home Building Hardwood ProductsThis vertically integrated, asset heavy business has seen continued revenue and margin growth through much of its thirty-nine years in business.
The Company is a leading manufacturer and distributor of interior and exterior home building products including molding, doors, and custom millwork. The Company excels in the entire process, beginning with manufacturing their inventory and raw materials through to distribution and sales. Their manufacturing process is completed in their strategically located headquarters, which supports substantial capacity with adequate land for potential expansion. Following manufacturing, the Company operates a truck fleet which supports the manufacturing facility and the Company’s several distribution facilities located within numerous states in the South-Central United States region. The Company holds an attractive customer base with no single client representing a high concentration, the largest 2021 customer by revenue represented only 1.8% of their sales. The Company’s customers include primarily the home builder market with limited exposure to large tract builders. Due to their proven track record and ability to scale, the Company has the possibility to rapidly increase revenue streams while maintaining all previous customer relations.
This Company has been able to drive continued growth and profitability over the past four decades. The Company currently operates at a profit margin of 11.2%, expecting to surpass a margin of 11.8% by 2024. During the Covid-19 pandemic, the Company’s sales declined by only $1.9 million, which was only 5% of their revenues, later rebounding $7.54 million during the 2021 fiscal year. During the 2022 fiscal year, the Company projects revenues of $58.76 million with adjusted EBITDA of $6.76 million, growth of 84.4% compared to 2021 adjusted EBITDA. The Company holds complete control over its vast manufacturing, delivery, and sales network of nine locations, creating the possibility to continue expansion with near zero restrictions.
On-site Co-Generation Heat & Power Plant - provides steam and electricity to operate plant from production waste with estimated utility savings of over $3,000,000 per year.
*Profit: Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation). This is the estimated total discretionary earnings (profit) for a business, usually based on historical trading.