Turnkey 30-Year Engine Machine Shop & Rebuilding Business – Tyler, TX
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A+ BBB Rated • Rare Inventory • Owned Real Estate Included
Ray Engine Inc. – Turnkey Engine Rebuilding & Precision Machining Business
Established in 1996, Ray Engine Inc. is a highly respected custom engine rebuilding and precision machining business located in Tyler, Texas. This nearly 30-year operation specializes in gasoline and diesel engine rebuilds, cylinder head porting, crankshaft grinding, block boring/honing, and performance builds for automotive, agricultural, industrial, marine, and racing customers across East Texas.
Financial Performance:
• Annual Revenue: $1,011,205
• Seller's Discretionary Earnings: $151,731
• EBITDA: $12,931
• Average Gross Margin: 60.5%
• No long-term debt
Key Business Assets:
• A+ BBB accreditation since 1997 with exceptional customer trust
• Over 3,500 unique customers (2020-2025) with strong repeat business
• Skilled team of 10 employees with 250+ years combined experience
• Owned real estate: 1.5-acre property with 13,530 sq ft across two buildings
• Real estate value: $879,450+
• Extensive specialized equipment valued at $153,000
• Significant inventory valued at $754,021, including rare, high-demand cores
Competitive Advantages:
• Nearly three decades of established reputation and customer relationships
• Comprehensive in-house capabilities for complete engine work
• Rare inventory including GM 327 FUELIE heads, AMC 4.0L cranks, and other sought-after components
• On-site partnership with Tyler Engine Balancing for precision services
• Turnkey operation with experienced workforce
Growth Opportunities:
• Launch remanufactured engine line using existing core inventory
• Develop e-commerce platform for rare parts and national reach
• Expand B2B partnerships with shops and fleets
• Geographic expansion potential
• CNC equipment upgrades to increase throughput
Owner Retirement Sale:
Seller offers comprehensive 6-12 month transition period including hands-on training, customer introductions, and operational knowledge transfer to ensure seamless continuity.
Ideal for existing machine shops seeking expansion, diesel service companies wanting in-house capabilities, or qualified technicians ready for a turnkey operation in the stable East Texas market.
Established in 1996, Ray Engine Inc. is a highly respected custom engine rebuilding and precision machining business located in Tyler, Texas. This nearly 30-year operation specializes in gasoline and diesel engine rebuilds, cylinder head porting, crankshaft grinding, block boring/honing, and performance builds for automotive, agricultural, industrial, marine, and racing customers across East Texas.
Financial Performance:
• Annual Revenue: $1,011,205
• Seller's Discretionary Earnings: $151,731
• EBITDA: $12,931
• Average Gross Margin: 60.5%
• No long-term debt
Key Business Assets:
• A+ BBB accreditation since 1997 with exceptional customer trust
• Over 3,500 unique customers (2020-2025) with strong repeat business
• Skilled team of 10 employees with 250+ years combined experience
• Owned real estate: 1.5-acre property with 13,530 sq ft across two buildings
• Real estate value: $879,450+
• Extensive specialized equipment valued at $153,000
• Significant inventory valued at $754,021, including rare, high-demand cores
Competitive Advantages:
• Nearly three decades of established reputation and customer relationships
• Comprehensive in-house capabilities for complete engine work
• Rare inventory including GM 327 FUELIE heads, AMC 4.0L cranks, and other sought-after components
• On-site partnership with Tyler Engine Balancing for precision services
• Turnkey operation with experienced workforce
Growth Opportunities:
• Launch remanufactured engine line using existing core inventory
• Develop e-commerce platform for rare parts and national reach
• Expand B2B partnerships with shops and fleets
• Geographic expansion potential
• CNC equipment upgrades to increase throughput
Owner Retirement Sale:
Seller offers comprehensive 6-12 month transition period including hands-on training, customer introductions, and operational knowledge transfer to ensure seamless continuity.
Ideal for existing machine shops seeking expansion, diesel service companies wanting in-house capabilities, or qualified technicians ready for a turnkey operation in the stable East Texas market.
About the Business
- Years in Operation
- 30
- Employees
- 10 Full-time
Over 250 Years of Industry Experience across all Employees. - Facilities & Assets
- Ray Engine Inc. operates from a 1.5-acre owned property in Tyler, TX, featuring two buildings totaling 13,530 sq ft: a primary 10,900 sq ft facility plus a secondary 2,630 sq ft building.
Included assets:
-Extensive specialized FF&E (borers, crank grinders, honing machines, align-honers, seat/guide machines, balancing equipment, press, welders, cleaning systems).
-Inventory: new parts, rebuilt engines, 375 block cores, 875 head cores, 415 crank cores, including rare high-demand items.
-No debt; real estate optional in sale. - Website
- https://www.rayenginetyler.com/
- Market Outlook / Competition
- The current market for engine machine shops in Texas (Feb 2026) is stable but competitive. Demand remains steady due to aging vehicle fleets (avg. U.S. age 12.5+ years) and diesel/agricultural needs. High-margin custom rebuilds and rare cores are in demand, but general repair shops face pressure from chains and EV transition. Asset-rich shops with skilled teams and inventory sell well, especially turnkey operations in East Texas. Valuation multiples: 2.5–4x SDE + assets.
- Opportunities for Growth
- Ray Engine Inc. has strong growth opportunities:
-Launch remanufactured engines and performance kits using inventory (target 40% revenue).
-Build e-commerce and online quoting for rare cores, expanding national reach.
-Form B2B partnerships with shops/fleets, leveraging 3,500+ customers.
-Expand geographically (Dallas/Houston/CA acquisitions).
-Invest in CNC upgrades and digital marketing to boost throughput and margins.
These steps could scale revenue to $15M by 2031 with disciplined execution.
Real Estate
- Owned or Leased
- Owned
- Included in asking price
- Building Sq. Ft.
- 13,530
About the Sale
- Seller Motivation
- Owner Retirement
- Transition Support
- Ray Engine Inc. offers comprehensive support and training during a 6-12 month transition period. Owner Charles Ray and the skilled team of key employees will provide hands-on knowledge transfer in shop operations. Training includes cross-training, workflow guidance, customer introductions, and ongoing mentorship to ensure seamless continuity and quality standards.
- Financing Options
- None
Listing Info
- ID
- 2467650
- Listing Views
Attached DocumentsAttachment Disclaimer
Acquisition Opportunity Ray Engine Intro.pdf
Business Location
Listing ID: 2467650 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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