Seller Financing Available
B2B Colorado's Top Plastics Recycling and Manufacturing/Extrusion Biz.
$2.8MM in Assets Debt Free. 2015 Cash Flow Proj $1.2MM on $6.4MM
Please see this video - copy and paste to a browser. https://www.youtube.com/watch?v=_cC2Zp_TOTA&feature=youtu.be
2015 Cash Flow $1.1MM on 6.3MM - Seller Will Do an Earn-Out. Includes $2.8MM in Assets/Equipment
One of the Largest and Fastest Growing Plastic Recycling Companies in Colorado. … Location South Metro Denver, CO
26 Yr. Niche Plastics Manufacturing Co.
(Complementary Biz.- under the same roof)
Colorado has ONLY 1 other recycling center like ours.
3,000,000 down at closing on a 4,500,000 Sales Price.
This transaction includes approx. $2,800,000 of assets, equipment and inventory completely debt free at the closing.
Assets Included in the Sale: The sale includes approx. 150,000 current inventory 2,600,000 in equipment.
Projected Cash flow for 2014 will likely be 500,000 on 4,500,000
Cash flow for 2015 is projected to be 1.1MM-1.2MM on approx. 6.3MM for both businesses included in this sale.
We are clearly one of the largest and fastest growing Plastic Recycling Companies in Colorado. … Location South Metro Denver, CO
The Deal: the buyer puts down $3,000,000 at closing, and gets just under that amount at the closing in hard asset value at the closing. In other words, the seller is committed to carry the value of the good-will of the company over time. In this scenario, the approximate 2.2MM in debts on the balance sheet will be paid off in full at the closing by the seller.
Potential Alternate Deal: As stated, the company has approximately $2.2MM in various debts on the balance sheet. Perhaps a qualified buyer can assume some of these debts and put down less at closing.
These are 2 separate, but complimentary companies being sold together.
The 1st is a 26 year-old plastic extrusion manufacturer that grosses 2MM- 2.5MM/year and has many long-standing and well-known customers such as the largest home hardware chain, the largest national consumer retailer and one of the largest directional drilling companies. We manufacture plastic products that national consumer retailer and other big box companies use to remodel their stores nationwide. For the national home hardware chain we manufacture sprinkler Pipe, and for directional drilling company we manufacture plastics needed for horizontal boring. These are just some examples.
The 2nd company is almost 4 years old and it recycles all consumer plastics containers. Other smaller companies tried to make what we do work, but we are the only company with the 2MM in equipment needed to make a great profit from it and have been able to scale the operation such that next year (2015) we will likely cash flow approximately 1.1MM-$1.2MM on 6.5MM in sales. (our projections) Our customers are large waste haulers and garbage transfer stations that bring in large amounts of consumer and industrial waste plastic. You must see the video on this.
The Seller will Stay On and assist in the Full Transition to the New Owner: As stated he is committed to carry up to $1.5MM of the total sales price and will do all he can to provide for smooth and orderly transfer of ownership and long-standing relationships with employees and customers. Again, next year will cash flow about $1.1-1.2MM on 6.3MM in sales as it stands. Please email or call for a detailed spread sheet on the monthly projections in each area.
BOTH OF THESE COMPANIES WILL BE SOLD TOGETHER IN 1 TRANSACTION.
We have no legal battles, lawsuits, or other complaint problems. We have an excellent safety history and we do have an insurance “Mod Rate” below 1.0. However, we did have 1 small injury in the past 2 years, so we are not perfect. We have no other disclosure items here. The seller is committed to stay on and ensure a smooth and orderly transfer of all employee, customer and supplier relationships. It must be clear here that we have an excellent team in the office and the 112,000 SF building that run every part of the operation. The business is NOT absentee-owned per se, but the owner is often out for many days at a time and the operation does NOT miss a beat. We also have a great long-standing and loyal GM that completely runs all day-to-day operations.
The seller seeks a win-win transaction structure that motivates both the buyer and seller to grow the company going forward. The seller will carry up to 30% of the sales price for a strong buyer. This speaks volumes about his confidence in the company’s ability to grow fast going forward with a new hands-on owner.
Please Email today for the comprehensive sales packet, including 3 years of financials and tax returns and a 45 minute long video detailing the shop and full interview with the owner. We have a great sales packet! Or please call 303-382-1900.
As stated above, cash flow for 2015 is projected to be 1.1MM on approx. 6.5MM for both businesses included in this sale.
The 1st company for sale is the Plastics Manufacturer. This 26 yr. old established business includes $795K in hard assets (recent appraisal), and another 150K in inventory on the floor. This totals approx. 950K.
Details on the 2nd company for sale – The Plastics Recycling Company. THIS IS CLEARLY WHERE ALL THE FAST GROWTH IN THE 2 COMPANIES WILL COME FROM OVER THE NEXT 3-5 YEARS. Today we have just 1 recycling “line”. The line is a comprehensive state-of –the-art, one-of-a-kind (in Colorado) processing line about 60 yards long that takes in large consumer plastic bottles, produces 70 tons of HDPE end-use plastic pellets each week for ultimate use in the manufacturing of all sorts of new plastic products.
These pellets are a hot commodity worth about 60%-70% of virgin plastic pricing. In short, we buy a wide variety of consumer recycling containers from many suppliers that would otherwise “pay” (instead of get paid) to dispose of them in a landfill. We pay between .20-.38 per lb. when they come in our doors by the ton. We process them as will be covered below, and then we sell the end product for between .50-.55 per pound. We earn about .14-.20 per pound in gross profit for every pound we process.
Currently we have just one line and are therefore restricted to processing about 3,600 tons a year. In short we need immediately and significantly greater capacity. In the recycling business… the more you make, the MORE YOU MAKE. It is that simple since the costs of installing equipment is expensive and overhead is high. But once you get past a certain tonnage per year, thus covering all your overhead, a much larger amount of the gross sales falls to the bottom line.. This is where we are today.
The seller is 100% emphatic that a new owner can buy 1-2 additional “lines” and double or triple the capacity and cash flow within 1- 2 years. The seller paid 1.5MM over the past 2-3 years, and thousands of hours getting the operation in perfect form. He had to get the perfect line/system in place so that all the kinks have been worked out (and there were many). Today, 3 years into this process, the “pioneering” of this prototype is all worked out and we are fully ready for 1-2 more lines. We have learned so much in the past 3 years and have made all the costly and time-consuming mistakes, since there was no blueprint or manual for us to follow. Being the first in Colorado, we NOW finally have the learning curve behind us
Today and Short to Mid-Term Projections: It is the last quarter of 2014 and this recycling center ‘runs like a top’. All systems are in place, all shop and office employees are well-trained to run things going forward. The “recycling line” we have in place today cost about 1.5MM and took about 3 years to get optimal and efficient. But, since we now have documented everything from the past and now know what we are doing, the new line will take just 6-7 months to order, install, and have fully-functional. Also, we now know exactly what to buy and how to set it up. (In the past we bought many items and parts that were wrong and we often had to wait several months to get installed. Again, all of this because we were “groping” through the process.) As technology changes, so does the equipment available to recycle with, resulting in lower operational costs and greater efficiencies. The GM (and the owner) who made it through the last process know exactly what "doesn't" work and what to buy and how to negotiate the best terms for the next 1-2 recycling lines.
The question a perspective buyer would have is, if we ‘build more capacity, will they come’? YES! The seller has stated that there is virtually infinite demand for the high-quality end-products - plastic pellets. There are almost infinite waste customers who would clearly rather “sell” waste plastic for say .25 per pound vs. disposing it in a landfill and “paying say $150/ton". Also, this is a great service for the environment and all cities/county/and municipal governments are pushing for solving the landfill problem. Our customers who sell us this recyclable plastic garbage are large trash haulers like Republic, Waste Management, and other waste brokers. These companies are all under great pressure to redirect waste out of landfills and instead into recycling centers. But as stated above, Colorado has ONLY 1 recycling center like ours.
THIS IS THE PROBLEM WE ARE HELPING TO SOLVE, AND THE PRESSURE OF THE REGULATORS WILL ENSURE OUR CONTINUED GROWTH GOING FORWARD.
Regarding the customers that buy our pellets, we have 2-3 major buyers. We do not have a customer concentration problem at all. We just have enough end product for these 2-3 customers. We need more production and then we can get contracts with more customers. Either 1 of these customers are committed to handle substantially more product (pellets) than we can now produce. And... there are literally dozens of local and regional end-user customers that would love to buy our recycled products for many reasons. One, it is great PR for these companies to boast about the percentage of a given manufactured product that is made from consumer waste. And two, we are more economical for them. They can buy our recycled pellets for say a 30%-40% discount over virgin plastic. Note: in plastic the manufacturing business, costs of goods sold (COGS,) is typically the largest cost of the end product, and therefore every penny counts per pound on their financial statements.
A consideration for the new owner: Not immediately critical, but a new owner should consider investing 800K- 1.3MM for a new line and get at least 1 new line over the next 1-2 years to take full advantage of the demand to take in waste plastic and also the great demand to sell end-use recycled pellets. A 1.3MM line would process/produce 2,000 lbs per hour, vs. the unit we have that produces just 1,000 lbs. per hour.
Going forward, we will very likely cash flow the numbers above based ONLY upon the production of JUST our existing line. The gross sales and cash flow stated above for 2015 is based upon what we have for recycling capacity today, without the new investments. There is much more to say here. Please call for details and see the video interview with the owner and full walk-through of the facility and operation detailing the math on this and the process overall.
Facility: 112,500 SF great operation. However, the seller plans to move the entire operation (likely at his expense, 250,000). He will be far better positioned with much more square footage which will soon be needed for growth at possibly lower rent. A win-win.
Please Email today for the comprehensive sales packet, including 5 years of financials and tax returns and a 45 minute long video detailing the shop and full interview with the owner. We have a great sales packet! Or please call 303-382-1900.
Our office employees and manufacturing and recycling technicians are the best in the industry. As they say… “You are as good as your employees”. On the recycling side, we had no blue print or manual created by someone else in the recycling industry for us to follow. Therefore, since we had to “pioneer” the entire operation from scratch we had to learn as we went. The new owner will step in to a great team who are the most experienced in Colorado at what we do.
We are recession proof: Consumers and industrial processes generate waste in good economic times and bad. The supply of waste plastic will always outstrip demand or capacity to recycle it. Likewise, the demand for end-use recycled pellets for the plastic manufacturing industry will grow exponentially in the West. The use of recycled materials is more economic than “new” plastic material and better for the environment. The consuming public is aware of the solid waste problems we have now more than ever and they WILL vote with the dollars and consuming decisions.
No sales and Marketing Efforts at all: In short, we have done very little to proactivity grow the business over the past 10 years or so. Oddly, we don’t even have a website. But we do hope to have a website for the first time in the near future.
We have a solid 26 year history and are very well-known in general. We have built a solid name and great reputation in our industry.
As stated above, the Seller will Stay On and assist in the Full Transition to the New Owner - The final and most critical aspect of this offering is the seller’s commitment to carry all the good will and blue sky of this transaction. The seller and his GM have a wealth of knowledge on how best to grow the business dramatically going forward. The seller coming into several million dollars due to the soon-to-be real estate sale, and at age 57 he just doesn’t have the energy to commit to push forward when the business needs it most. All the risk and uncertainty of this relatively new industry in this new market has been washed away. Only 1-2 years ago this business was NOT ready for sale or transfer. We needed 1 full year of uninterrupted operation with the new equipment and procedures to ensure everything is optimal. Today it is ready to sell and for a new owner to step in take it to the next level.
The Seller will Stay On and assist in the Full Transition to the New Owner: As stated he is committed to carry up to $1.5MM of the total sales price and will do all he can to provide for smooth and orderly transfer of ownership and long-standing relationships with employees and customers. Again, next year is projected to cash flow about $1.1MM - 1.2MM on 6.3MM in sales as it stands. Please email or call for a detailed spread sheet on the monthly projections in each area.
Disclaimer: All information regarding businesses for sale is provided by the Seller and is NOT verified in any way by the Broker. You understand and agree that Company Broker Group, LLC or Paul Olsen is not responsible for the accuracy of any of the information and you agree to indemnify and hold Broker and its agents harmless from any claims or damages which may occur by reason of the inaccuracy or incompleteness of any information provided to you. The Broker makes no representation or warranty, express or implied, about the accuracy or completeness of any information provided to the Buyer through the broker.
Please Call of Email for Information: The broker is available at any time to meet to discuss your interest in this offering. Please call or email firstname.lastname@example.org for a comprehensive sales packet including all financials and full video on the operations and interview with the owner. Thank you for your interest in this offering.