Business
Please quote reference B07811.
The company develops, manufactures and supplies industrial finishing products, including includes leather finishing chemicals, polyurethane dispersions (PUDs), acrylic emulsions, acrylic solutions, automotive aftercare, pigment dispersions, non-standard colours, and surface coatings. The company also offers toll manufacturing.
Established in the early 2000s, this North East-based company specialises in the development, manufacture and distribution of industrial finishing products, catering to a diverse range of industries – from wood finishing, leather finishing and water treatment through to filmmaking and aviation.
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The company’s suite of available products and services includes leather finishing chemicals, polyurethane dispersions (PUDs), acrylic emulsions, acrylic solutions, automotive aftercare, pigment dispersions, non-standard colours, surface coatings, toll manufacturing, and coatings.
The company benefits from its own purpose-built 10,500 sq ft manufacturing, storage and office facilities at its factory in North East England which is owned by the major shareholder. This is supported by a further 19,000 sq ft at an adjacent storage facility.
The target company possesses a strong global reach, with 20-30% of its revenue generated through exports. This international success is attributable to their focus on high-quality, bespoke products delivered at competitive price points alongside honest, reliable customer service. As a result, they have established a broad network of clients spanning diverse geographic regions including Latin America, Europe, Africa, and the United States.
In recent years, the company has pursued a strategy of diversification by: focusing increasingly on the UK’s non-leather segment and the paper/wood coating industry; focusing increasingly on strategically important international markets; and introducing a toll manufacturing service.
The company offers a unique value proposition:
- Strong IP and technical expertise, with company-own formulations;
- International reach, with clients across Latin America, Europe, Africa and the United States;
- REACH and CLP compliant, and ISO 9001 accredited;
- Competitive pricing, enabled by the company’s lean operations;
- Diversified product and service offering, improving resilience;
- Purpose-built manufacturing, storage and office facilities at its factory in North East England.
Financial profile
The company has exhibited remarkable resilience over the course of its history, innovating and adapting in depressed markets. In 2022, the company achieved a turnover of £943,630 and an adjusted EBITDA of £63,716.
Highlights –
- Strong IP & technical expertise with an extensive library of in-house formulations;
- International reach with established clients across diverse regions;
- Competitive pricing driven by lean operations;
- Diversified product & service portfolio for market resilience;
- Purpose-built facilities for efficient production.
Opportunities –
- Revenue target projetced to exceed £1m by 2024, underpinned by 20% ROCE, and £1.5m in 2025.
- Further expansion in key international markets like US, Brazil, and France;
- Increased focus on UK non-leather segment, particularly wood/paper coating;
- Opportunity to significantly boost revenue by recruiting a sales team.
The company offers a unique proposition for potential buyers seeking a foothold in a high-barrier-to-entry market. They bring extensive industry knowledge, diverse formulations, regulatory compliance, and versatile production capabilities.
Location
The business is based in North East England.
Premises
The business operates from a purpose built facility.
Tenure
The premises are leasehold.
Hours
The business operates all the year round.
Staff
The business has a small team of staff. Further information can be provided on request.
Financial Profile
Turnover IRO – £718k for 2023.
Revenue projected to exceed £1m by 2024, and £1.5m in 2025.
- 100% share sale
- Prospective purchasers will be required to sign an NDA.
