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Profitable Plastic Manufacturing Concern

R6,000,000 plus stockPretoria - CenturionListing: #14007

Pretoria - Centurion businesses for sale 

R6,000,000 plus stock

Industrial Manufacturing businesses for sale
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About this business for sale

Profitable Plastic Manufacturing Concern

Business stand to benefit from a BEE owner.

This established Plastic injection and blow moulding manufacturing business is well situated in central Gauteng close to the major markets.

The current business owner established the business but wants now to retire as he is already well beyond retirement age. The business has built up an excellent reputation in the market place for good quality and a wide range of products.

The existing client base is solid but there is huge potential to grow the business with a full time sales rep rather than the part time rep arrangement currently in place. Furthermore, very limited advertising is being done. There is sufficient spare production capacity available to make a wider range of products.
Sales are approximately 30% cash and 70% credit with 30 days credit.

The equipment is very neat and well maintained and this includes an in-house mould shop with a qualified mould technician.
The business is normally closed during December and production during the year is evenly spread out as demand for the products are not seasonable for this industry.
Staff members, totalling +/-26 are permanently employed. The business owner is fulltime involved in the daily activities of the business but is more than willing to stay on to ensure a smooth hand over.

The listed price of R6,000m excludes stock of approx R2,500m and VAT (If applicable). Fixed assets and equipment is estimated at R750k at second hand value against original purchased values of R4,222m.

Company owned moulds have been expensed over the years. The current and replacement values of these are worth millions of Rand and therefore barrier to entry for this type of business is considered as high.

Sellers Discretionary Earnings, also known as EBPITD (Earnings before Proprietors Compensation, Interest, Tax and Depreciation) based on historical trading amounts to an average of R148 per month.

Sales income has been fairly static year on year but must be seen against the limited marketing effort by the owner..
The premises are owned by the Seller and are also available for sale. Offers in the region of +/- R11,300m will be considered for the property. Included in the Operating expenses is a charge for lease rentals. The property can also be rented from the owner or rented with an option to purchase. Premises offers good expansion possibilities.

Well known and established business with strong cash flows.
The business offers good potential and a new younger energetic owner will be able to build on the reputation and good standing established over many years. The business will also benefit from a BEE investor who is positioned to explore and develop new markets.
Keen Seller and the price highly negotiable.

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Leon Bahlmann