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AQUISITION OPPORTUNITY

UNIQUE OPPORTUNITY TO ACQUIRE THE BUSINESS AND ASSETS OF A HIGHLY ACCREDITED MANUFACTURER OF INDUSTRIAL ROLLS AND CYLINDERS

KEY INVESTMENT HIGHLIGHTS

  • Regarded as the UK’s largest independent specialist Roll manufacturer in the UK;
  • Undertakes precision engineering and general high quality machining to a wide range of industries;
  • International customer base serving markets throughout the UK and Europe; and
  • Highly skilled workforce with significant identified growth opportunities.

BUSINESS OVERVIEW

  • Consists of three connected but independent companies with interlinked trading operations. The company has over 65 years’ experience and specialises in manufacturing rolls and cylinders including lightweight carbon fibre and heat transfer rolls.
  • The company has the ability to predict performance and produces composite tubes for both commercial and military industries.
  • Supplies to a wide range of industries including printing and packaging, steel, paper, glass, laminating, polythene and film.
  • Manufacturing process is highly complex and able to finish rolls and cylinders in a variety of ways from plain turned or ground to highly polished chrome plated rolls and, a variety of ceramic coatings and rubber coverings.
  • The only UK licensed supplier of specialist fibre non-woven mill roll coverings which supplies the steel converting, steel packaging and automotive industries throughout the UK and into Europe.
  • Benefits from specialist dynamic balancing facilities and in-house software to calculate critical speeds which affect roll performance.
  • Facilities enable it to produce rolls and cylinders up to 1,350mm in diameter and components as long as 15,000mm on both CNC and manual machinery. Cylindrical grinding, milling, boring, drilling, High Velocity spraying, as well as manufacturing carbon fibre and glass fibre filament wound tubes compliment the turning facilities.

REASON FOR SALE

  • The businesses have experienced liquidity issues following significant cash leakage to meet historical pension liability contribution payments.
  • It is seeking a new investor to recapitalise the business and exploit new market opportunities.
  • Charterfields are acting as agents to the Business, liaising closely with management and the companies’ lenders, who is supportive of the process.

MARKET OPPORTUNITY

  • It is a significant operator within a highly specialised niche market sector. The sale represents an ideal opportunity to enter the complex industrial roll and cylinder market

FINANCIAL PERFORMANCE

  • It is expected to improve to EBITDA positive with scope for significant further growth.
  Company A Company B Company C  

Group Forecast

FY19

 

£’000

Unaudited

FY17

Mgmt

FY18

Unaudited

FY17

Mgmt

FY18

Unaudited

FY17

Mgmt

FY18

Turnover 2,018 1,759 860 583 325 230 3,070
Cost of sales (1,410) (979) (695) (597) (300) (230) (1,884)
Gross profit 608 780 165 (14) 25 1,186
EBITDA (36) 98 (44) (185) (10) 314

KEY ASSETS

  • It holds bespoke plant and machinery and precision engineering assets and benefits from a strong customer base with opportunities to expand. NBVs, for the group has at December 2018, subject to security, are below:
£’000 NBV
IP 2
P&M 140
Motor vehicle 14
Office equipment 12
Stock and WIP 250
Debtors 513
929

OPERATIONS

  • Operates from two leasehold premises in the North West each c20,000 sqft attributing rent of £68k and £30k pa, respectively.
  • Employs 43 highly skilled and loyal employees.

TIMETABLE FOR PROCESS

  • A deadline for indicative offers has been set for 12:00pm on 15 February 2019.
  • Further details of this opportunity can be obtained following completion of a confidentiality agreement which is available by emailing us at enquiries@charterfields.com quoting “9257”

Further details of this opportunity can be obtained following completion of a confidentiality agreement which is available by download or alternatively by emailing us at quoting "9257".