Marktlink Fusies & Overnames

International distributor of rubber and plastic products looks for buyer

Industry & Production

Worldwide

0 - 10 employees

1.000.000 - 2.500.000

The company is an international distributor of rubber and plastic products for the OEM market. The company was established in 1985 and has two shareholders (50% – 50%). Because of its specialty, the company is active in a niche market with an extended and loyal client base.

Activities and particularities

  • The development of client specific rubber and plastic products for the OEM market (components for boilers, air conditioners, heat pumps, ventilation systems, solar boilers, lighting, microwaves, etc.).
  • Product categories vary from standardised rubber products to client specific rubber parts, hoses and other plastic parts that are used in boilers for example.
  • The company is specialised in high-temperature materials. The company is able to quickly design moulds and make and deliver prototypes, according the client’s requirements.
  • Full modification, repair and maintenance facilities available to ensure the production of moulds in a short period of time. The company can meet specific product requirements and standards set by various sectors; food packaging, medical products and baby products, among others.

Financial

The company has a financially healthy foundation: growing revenue in past years with an average gross margin of over 60% and an exceedingly positive EBITDA. Increased and accelerated revenue is expected in the coming years.

Potential for growth

The company has several growth pillars to take it to the next level:

  • Expanding focus to new clients by implementing an (active) online acquisition strategy.
  • In order to meet additional requests, new staff can be recruited to scale up capacity.
  • Expanding product portfolio with related products that are currently in high demand.
  • Expanding company activities to other countries such as Belgium, Germany, Denmark and the United Kingdom.
  • Increasing revenue in multiple markets with prospects of continuing growth in the coming decade.

Sales rationale

  • The preferred structure is selling a majority of 51% – 100% of the shares to a strategic or financial buyer, in combination with an MBI candidate who is also willing to participate in the company.
  • One of the shareholders want to spend more time doing other activities, but is prepared to stay on for a transition period of 1.5 years.
  • The other shareholder is prepared to sell its shares, but is also interested to stay on longer than the transition period of 1.5 years.

Investment consideration

  • A unique position in the rubber and plastic products supply chain and active in a niche market.
  • Loyal client base containing multiple substantial clients who increase their purchase annually.
  • Continuous growth for the coming years.
  • Business model that can withstand the various macro developments.

More information?

A detailed Information Memorandum is available on request. Download the teaser here.

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