Industry Overview
The Company is one of the leading importers and distributors of non-ferrous metals operating from modern premises and is experiencing strong demand for its products and services
Business Description
Australian leading importer & distributor of non-ferrous metals including copper, brass, bronze and cast iron
Financial Summary
The business generates revenues of approximately $30 million and EBIT of $2.5 million
Investment Rationale
Market Leader - As one of the longest established Australian suppliers of non-ferrous metals, this business is ideally positioned to leverage the market growth resulting from the renewal energy and artificial intelligence industries;
Strong & Diverse Customer Base - the Business has an extensive history of servicing its customers across a diverse range of industries. The Business has several long-term loyal customers with seven of the top ten customers having been customers for five or more years;
High Return on Capital and Strong Asset Backing - of 35.0% (EBIT / Net Assets) with net tangible assets of approximately $6.0 million;
Excellent Reputation & Market Position - The Business is highly respected and is well known for its credibility, honesty, reliability, product quality and superior service levels including having on time delivery in excess of 99.75%;
Significant Growth Opportunities - including:
- Additional Demand from Data Centres for AI - Industry estimates that there will be over $250 to $300 billion spent on the construction of between 90 and 100 data centres over the next decade;
- Modern Warehouse & Offices - with significant capacity to expand the volume of products distributed as a result of the under utilisation of the existing warehouse;
- Growing Markets - as a result of large infrastructure spending in Queensland associated with the 2032 Olympics being hosted and the ongoing demand for the construction of mines and renewable energy infrastructure including solar farms and e-vehicle charging stations;
- Interstate Expansion - The Business believes that there is a significant opportunity to expand interstate and open additional branches;
- Expansion of Products - there are opportunities to expand into the distribution of other speciality metals such as stainless steel and aluminium; and
Experienced Management Team & Systems - The Company has a very experienced and knowledgeable management team that also has excellent systems and processes including holding ISO accreditations.
Customer Overview
The Company has over 890 customers including electrical switchboard manufacturers (supplying data centres and renewable energy products, wind and solar), manufacturers facing into the building and construction industries, mining and agriculture
Transaction Information
The Vendor is seeking a sale of 100% of the shares in the Company
To register interest you will need to complete our Buyer Verification Process.
