Key Assets

GOING CONCERN SALE-Machine Tool Company

Close tolerance precision CNC machining shop and manufacturer of full assemblies with over 75 CNC Machining Centers.

Our firm has been retained to seek a buyer, investor or partner for a machine shop headquartered in New Jersey (the “Company”).  The Company occupies a 56,000 square foot facility that is well equipped with the capability to machine precision tolerance parts from 1/8’’ to 80’’ as well as manufacturing of full assemblies, including hydraulic actuator assemblies.

The Company was founded in 1963 with one lathe, and over the years, grew into a $10 million per year enterprise that continuously exceeded customers’ expectations and demands. The founder handed the company over to his to his children in 2005, who continue to grow the business. Throughout this growth, the Company has maintained strong customer retention with over 95% of products delivered on time and 98% or better quality.

In 2006, the company completed a vertical integration with a large OEM customer, planning to make the combined businesses more profitable and better integrate sales and operations to increase margins. The integration was ultimately unsuccessful due to distribution challenges, despite heavy investment from the Company.  In late 2014, the acquired entity was spun off to a large friendly firm that has better worldwide distribution and which expects to send substantially growing volume through the Company in the near future.

The Company has built a reputation of providing cost effective, just in time solutions for customers at a competitive price point. It employs over 80 highly skilled individuals who work in 2 shifts (up to 24 hours/day) and with an average of 15+ years of manufacturing experience. The Company serves, and is contracting new revenue in many industries, including: Aerospace, semiconductors, hydraulics, Department of Defense.

This is an excellent opportunity to partner with, invest in, or acquire an established machine shop with a strong history and substantial manufacturing capacity.  The knowledgeable, cost efficient workforce is eager to continue their employment.  There is a significant opportunity to not only expand business with the Company’s existing customer base, but also utilize their excess capacity to make new components in any number of different industries while broadening the customer base.