Our firm has been engaged to seek a buyer, investor, or joint venture partner for Dixie-Southern Arkansas,
LLC a wholly owned division of Dixie-Southern (“DS” or the “Company”), an industry leading, custom steel-fabricator of large and heavy ASME code vessels, tanks, pipe and other mechanical components for all industrial processes. The Arkansas facility achieved revenue of over $4,000,000 in 2012 utilizing less than half of available capacity.
DS provides services for all phases of production, from design, engineering, raw material sourcing to fabrication of final product. The Company fabricates industrial process components with a variety of metals and alloys including carbon steel, stainless steel, aluminum, jessop, Hastelloy®, Inconel®, carpenter, duplex/super duplex and other nickel alloys. DS also provides a full range of coatings, linings, painting and testing.
The primary industries served by DS include power generation and utilities (coal, natural gas, wind, and solar), water and wastewater treatment, phosphate and chemical, food and dairy, pulp and paper, oil and gas and defense and aerospace. The Company’s ability to fabricate heavy steel and stainless steel tanks, cylinders, pipe and duct is almost limitless.
Founded in 1976, DS started as a small fabrication job shop and now occupies 2 leased facilities totaling almost 50,000 square feet on 20 acres with abundant storage capacity and direct access to rail. Located in Springdale, Arkansas, DS is ideally situated to serve the Petrol/Chem industries in Oklahoma, Texas, and Louisiana and other surrounding areas. The facility is less than 3 miles from Interstate 540 and only 5 hours from Dallas.
The machinery and equipment is all in excellent condition and many pieces are new. Capabilities including plate rolling, shearing, breaking/bending, and shape burning. Plasma cutting, drilling, and punching are also done in house. Painting, while performed by a sub-contractor, can still be completed on site. The Company is able to roll metal up to 1 inch of thickness and the main facility includes 5 overhead cranes, each with capacity of up to 10 tons.
Ownership has decided to divest the Arkansas facility from current operations in Florida, but would support a new operator by sourcing projects in the Midwest, Southwest, and all western locations better fulfilled at this facility. This is an excellent opportunity to acquire a dedicated and experienced workforce in place, excess capacity, and a premium location.