Indicative offers are sought for a profitable Melbourne based PVC Compounding business with strong brand & distribution:

• Forecast sales approx. $26 mil;
• Forecast EBITDA of $2.8mil;
• Profitable, margins in excess of 28%;
• Exceptional reputation for service & quality;
• National distribution sales & marketing team; and
• Strong independent production management team. 

The Business has grown based on process expertise, customer expectation, investment in equipment and staff training, flexible-manufacturing techniques, and is responsive to the market. The Business also maintains its strong position in the industry by developing very good relationships with suppliers and customers. 

The key strengths of the Business include:

1. Processing knowledge: Extensive knowledge in the chemistry and processing of compounds. This has lead the company to be a leading supplier in the industry;
2. Product range: A range of over 500 products to a wise range of customers. All products are profitable at gross margin level and there is scope for greater margin in some instances;
3. Market offer: A complete business solution to its customers by being able to manufacture a full range of compounds. The technical and commercial personnel ensure that a complete solution can be offered to the customer; and
4. Flexibility, low cost and speed to market: The range of manufacturing equipment provides capacity to undertake both long and short production runs to react to customer’s demands and future requirements for new products. 
5. Supply agreements: Strong relationships are in place to deliver the lowest cost raw materials for the business;

The breadth of equipment allows a range of product grades and volumes to be scheduled efficiently and with minimal lead-time between production runs. The business is able to efficiently produce compounds on a made-to-order basis as well as a made-to-stock basis. 

The Business is likely to be of interest to operators with similar activities seeking to enhance their market share and to other industrial product and compound manufacturers seeking to diversify their operations. 

An information brief will be provided on execution of a confidentiality agreement.