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Manufacturer of Industrial & Commercial Paper Tubes - SOLD

The Company is the largest and healthiest New England manufacturer in the spiral and convoluted paper tube manufacturing industry.  This Company, with two New England manufacturing facilities, has the ability to manufacture paper tubes with the largest internal diameter of any regional company.  Their product, a disposable paper tube, is a vital part of the packaging used by other manufacturers to deliver their finished goods.  IE: Fabric, roofing, ribbon, etc. delivered on a roll. 

In 2013 Management hired additional talent to assist with running the business.  This key hire, as well as strategic improvements in equipment (both new and overhaul in existing) and adjusting related party rents to market rates, resulted in lowering EBITDA.  Now that the equipment is in place and talent is up to speed, EBITDA is returning to historical levels.

Investment Considerations:

  • Equipment to produce tubes with an ID of ¼” to 42” and up to 30’ lengths
  • Experienced team in place to meet customers demands
  • Ability to handle quick turn, quick ship orders
  • 823 Individual customers in 2015
  • Over 500 Customers with revenues under $1,000,000.
  • Largest customer is only 5% of revenues
  • Top 10 Customers are only 28.6% of revenues
  • Top customers are industrial product customers (larger size or thicker wall)
  • Two manufacturing facilities
  • Non-union workforce

Location:         New England, United States

Real Estate:    The Company owns and operates 52,000 square feet of manufacturing, warehouse and office space.  The Company also leases a second manufacturing facility about 30 minutes away with an additional 35,000 square feet of space.

Customers:     The Company has long-term relationships with customers, some going back five decades.

Employees:    The Company currently has 47 employees plus one full-time working owner

Reason for Sale: After 40 + years of building the business, the owner is looking to retire.

Transition:     Owner will remain available for a period of time to be agreed upon to transition a new owner and effectively transfer the business and clients.

Location:         New England, United States

Click here for a copy of the NDA

For additional information, please email dhumphrey@beaconequityadvisors.com