Buyin opportunity – Drilling engineering and supply
Location: North East England
This represents an excellent opportunity for a national or international business to acquire an established, growing, niche drilling supply and engineering company, and benefit from the continual growth.
The Company leads in drilling engineering and supply for the international site investigation, geothermal and water well markets.
- The Company engineers and acts as a distributor for a broad range of drilling consumables to the site investigation, geothermal and water well markets.
- The long established company has a strong reputation for offering high quality products, which can be tailored to individual customer needs.
- A loyal customer base ensures regular orders, with the top ten customers having traded with the Company for an average of over six years.
- Regular training and a low turnover of staff has resulted in an experienced management team and workforce being established.
- Gross profit margin has increased as the Company builds on relationships with existing suppliers and forms relationships with new international suppliers.
- The current freehold premises have the capacity to cope with growth due to unutilised warehouse space.
- The shareholder is willing to stay on at the Company for an appropriate handover period.
The Company has significant further growth potential, allowing an acquirer to readily increase value post acquisition.
Expansion of the current product range will aid with further growth, including:
– Establish a drill rig hire fleet;
– Supply tooling for DTH hammers & overburden systems;
– Branch into horizontal drill tooling;
– Possible opportunities for the sale of mini soil rigs; and
– Tooling for the piling industry.
A target list of potential new customers is maintained, with the view of selling existing products to increase sales. Targeting this list has driven the impressive growth to date, with there being further potential new customers to deliver further growth.
The Company can also use its strong customer base to cross sell other engineered items.