This company is a fast-growing, highly profitable, commercial window & door manufacturer, distributor and installer based in Toronto, Canada.
Revenues come from dealer sales (80%) and installation (20%). In 2017 revenue was just over $20.3M and adjusted EBITDA $4.4M1. With a fiscal year end of May 31st, 2018 revenue is expected to be just over $26.6 million and normalized EBITDA just over $10.4 million. The Company has experienced strong organic growth with a CAGR of 20% over the last three years. In 2017 the Company started implementing a growth strategy that began to show results in 2018. Management expects the Company will generate $64M in revenues and $23M in net income by the end of 2021.
Unlike many large commercial window and door manufacturers, the Company focuses on smaller, higher margin jobs. They avoid large, multi-million-dollar new construction projects and prefer providing customized solutions for small and mid-sized jobs through a network of small to mid-sized dealers. Focusing on schools, smaller jobs and window replacement programs has enabled the Company to largely avoid the cyclicality in the traditional building cycle.
The Company’s products are certified and approved for use in the U.S., and it operates a small distribution facility in the Midwest, but U.S. sales account for less than 1% of total revenues. Because of the Company’s significant cost advantages over U.S. competitors, management plans to focus on the U.S. market as part of its growth strategy.
The Company was founded over 20 years ago and operates out of a specially built 101,000 SF factory with state-of-the-art, CNC machines and a centralized manufacturing execution system (MES) that integrates ordering, inventory management, specification, and the manufacturing process, making operations very efficient. The Company has over 80 full-time, non-union employees, most of whom have been with the Company for over 10 years. The owner is in his early 60’s and is only semi-active in the business. He wishes to sell the Company and fully retire so he can pursue his personal interests, however the Company’s experienced and talented management team will remain with the Company after the sale.
About the Seller
United States of America
United States of America
Building Products, Construction Materials
Type of Acquirers
Reason for sale
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