Plastic Injection Moulding Factory With Innovative Products For Sale

Description

This business is located in a small town approximately 50 kilometres east of Pretoria and was originally established in 1973 by the current owners’ father. It began as an engineering company specialising in tool and die-making for the plastics industry and has since evolved into a manufacturer of specialised components serving South Africa’s mining, construction, agriculture, and retail sectors.The company is ISO9001 compliant and is an award-winning supplier to a major mining house. It is subject to annual audits by this client to ensure that quality standards are consistently maintained and improved year on year.The business has experienced a significant decline in turnover over recent years, largely attributed to market transformation pressures and increased competition from imports. At its peak, the business achieved an annual turnover of approximately R12.0 million, which has since reduced to around R5.0 million. Despite this, it continues to operate with support from long-standing clients, although its growth potential remains constrained under current ownership structure.The owner has developed three proprietary products with strong market potential, which are included in the sale. Further details are available to qualified buyers. Two of these products have been assigned to a client in exchange for worldwide manufacturing rights.The business operates from two well-maintained industrial buildings within the town’s industrial area. The property forms part of the sale, as relocation of the manufacturing assets would be costly and impractical. Alternatively, the asset base may be negotiated separately depending on buyer requirements.The business is being sold as a going concern, enabling the transaction to be structured as VAT zero-rated. The valuation is based on the second-hand replacement value of the assets, estimated at R14.0 million, with a stated discount of approximately R3.0 million. In addition, the sale includes an operational business generating around R5.0 million in turnover, along with three identified growth opportunities with potential to restore turnover levels up to approximately R12.0 million per annum.The current financial position is close to breakeven, excluding owner remuneration of approximately R400,000 per annum.The property is held in a separate property company and was recently valued at R14.0 million. Both the business and property are available for sale at R11.0 million each, with offers negotiable.Please note that this business is not suitable for government funding through IDC, NEF, or SEFA, and audited financial statements are not available for funding applications.