Stainless Steel Food Processing Fabrication w/ IP Advantage
Asking Price:   $3,950,000Inventory:   $250,000 ++
Gross Revenue:   $2,245,566 (comments below)Real Estate:   $1,130,000 ++
Cash Flow:   $542,273 (comments below)FF&E:   $600,000 ++
++ included in the asking price         ** not included in the asking price
Gross Revenue Comments: 2008 Internal
Cash Flow Comments: 2008 Internal
This business offers a unique opportunity to acquire a proven innovator with a reputation for creating ground-breaking solutions for the food industry. This company has recently adapted its own solutions – used successfully in the poultry industry for years – for one of the top-three red meat processors in the world, and has been told that its systems will “change the way red meat is processed across the globe.” One client estimates savings from reductions in labor and down-time after installing this company’s equipment in domestic plants only at over $100M a year; the company is now retrofitting the first of several U.S. facilities for this client.

Established in 1994, this custom metal fabrication business specializes in designing stainless steel food processing equipment for the meat and poultry industry, and is recognized as a market leader in the controlled infeeding and storage of raw product. Fortune 500 companies rely on this well-known and respected niche player for engineered reliable, custom-designed infeed systems for all types of applications. The company’s patented solutions to labor intensive issues have been quietly revolutionizing the meat processing industry, and saving its customers tens of millions of dollars since its first patent was issued in 1995.

This business currently markets and manufactures five U.S. patents, and has two patents pending. All intellectual properties provide labor saving solutions for the food industry. Five of these solutions are designed for the separation, and single file placement of raw, bulk meat and poultry. One of the patents applies to the de-nesting of bulk frozen product in both buckhorn style baskets and 70-pound totes, while another patent application applies to the weighing and rejecting of boxed product.

This company’s solutions have been sold in front of equipment from Marel, Scanveagt, Sortaweigh, and others for weighing and sorting. The company has extensive experience in spacing whole birds and front halves in the poultry industries; its infeed systems have been sold in the US, Canada, Denmark, Iceland, Australia, and Japan.

At this time, the company is in the process of expanding its patent portfolio and bringing equipment to market for the separation of split breast and butterflies in the poultry industry, and has recently adapted and installed its equipment in one of the country’s largest red meat processing plants. This firm prides itself on its ability to find simple, mechanical solutions to labor intensive problems. To date, all of this company’s patents have been both approved and marketed.

This business offers a unique opportunity to acquire an established innovator that is ready to embark on a new and explosive phase of growth in the company’s history! It is also well positioned in the recession resistant food sector of the economy, with regional access to an abundant labor force.
About the Business
Year Established:1994
Employees:15 full time -
Facilities:This business is located in a new and expanding industrial park that was developed by municipal planners. Two primary facilities – both with office space – are housed in approximately 40,000 square feet under roof, and sit on eight acres of highway frontage property.
Market Outlook and Competition:Competition: This business has three primary competitors in the south central United States. However, none of these companies offer competing patented equipment solutions to the food processing industry at this time. Growth/Expansion: Sales for this business could increase exponentially with the creation of a dedicated sales force. To date, the company has been focused on R&D and designing custom solutions for its clients on demand; sales and marketing efforts have been left to the owner and one key employee. The majority of the company’s sales come from referrals. There is also enough space at the existing facility to triple capacity, if needed. The business is located in a region that has easy access to a well-trained labor force for additional hiring. Current efforts have been directed primarily at domestic poultry processors, but there is almost unlimited opportunity to expand into the further processing of red meat, pork, lamb, seafood and non-food related products (i.e. packaging, shipping, pharmaceuticals, baked goods and produce) – both domestically and internationally. Additional capital to support ongoing research and development efforts for equipment that is currently in patent pending status could result in several additional revenue streams from complimentary equipment and solutions. This business is located in the south central United States, and is ideally situated in the geographic center of North America. Its principal offices are advantageously located for distribution to all North American markets, and sits on a rail line with a direct route into Mexico, South America, and Gulf ports serving the Caribbean basin.
About the Sale
Management Training and Support:The owner is willing to stay on in a leadership role for up to two years. The current management team has over 60 years in combined fabrication experience from project engineering, equipment design, and completion. A loyal, young and energetic staff would most likely be willing to stay on under new ownership. This business is also an attractive option for national recruiting efforts.
Reason For Selling:Retirement, and expansion of business
Attached Files - Attachment Disclaimer
Seller Profile - Seller Profile - #1191140 KDownload
Confidentiality Agreement - Confidentiality Agreement - #1191113 KDownload
Buyer's Agency - Buyer's Agency Acknowledgment - #119132 KDownload
Buyer Interview - Buyer Interview Worksheet - #1191202 KDownload

KEYWORDS: food processing, meat processing, poultry processing, Tyson, Tyson Foods, Cargill, Purdue, Pilgrim's Pride, Stainless Steel, IP, patents, patent, Intellectual Property


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Chris Taylor, MBA  |  Synergy Business Services, LLC
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