turner butler are delighted to be appointed as sole selling agents for this exciting business opportunity which has never been brought to the market for sale before. The company is a british based pump company specialising in the design, manufacturing and/or supply of individually engineered units for the following industries: • api oil & gas (offshore and onshore) • heavy chemical & petrochemical • fertilizer • molten sulphur, salts & metals • mining - leaching, electro-refining & winning • metal pickling & treatment • phosphorous, titanium tetrachloride & dioxide they specialise in projects with high levels of contract specific documentation, inspection, certification & testing – being accredited to iso 9001/2008 by bsi ltd and first point assessment ltd. Their supplies include vertical and horizontal centrifugal units tailored to clients needs, rather than standard designs offered by the big pump groups, available in over 25 different materials of construction - metals & co-polymers. This company is small in size and yet a giant by reputation worldwide in its sector. The company commenced trading in 1992, and has built a reputation for delivering excellence year on year since then. The economies of scale associated with its size have consistently delivered outstanding profitability. The managing director has 40+ years of generic experience in this sector and is well known and regarded on the world platform that this company trades. He now feels the requirement to seek an exit strategy towards retirement, but will be happy to provide a years worth of continued support for the company, to enable a seamless transition between ownerships with, perhaps, a reduced capacity consultancy role beyond. Over the last 18+years of building the business, they have achieved inclusion on the' approved vendors list' of most oil, gas& chemical industry majors and the contractors that support them. This means that they automatically get enquiries for upcoming projects and with the current, viable oil price, which generally expected to rise, they cannot see any evidence of a cessation of major projects in the next 10 years. The company’s name is well established with an excellent track record and strong brand imaging. This has taken time to establish and the barriers to entry for anyone new are formidable. To achieve this status has taken a lot of effort and expense, especially travel costs for visits, entertaining, etc ....but it has paid off. In addition they have a carefully selected small network of agents in key geographical areas. In the last 5 years, m & a consolidation within the supplier side has left the majors with fewer vendors to send enquiries to, bringing even further benefit to the business. The evidence that their identity and capabilities is known and increasing, is that in 2009/2010 so far, they have been sent enquiries for their services from the following: • jgc - japan • technip - italy • petrofac - dubai • daelim - south korea • sk eng - south korea • daewoo- south korea • pdvsa - venezuela • iooc - iran • petronas - malaysia • knpc- kuwait • pegasustsi - florida, usa you will note the eastwards shift .none of the above companies have been previously approached by the company and they have no real relationship with them, in as much as they have never run a project with them, as yet. These unsolicited enquiries are the results of “being on the lists”. The company is staffed by experienced engineers, and they have undertaken contracts for most major oil & chemical companies and their contractors. Conventionally, the hard part of each project is getting the rfq (request for quotation). Once that is received, then a competent project engineer can quote them and negotiate a result. The stage is set for a new owner, it doesn't need another full time “face of the industry” to keep it going. The company has an identity of its own. The company’s number 2 project manager is believed to be more than capable of heading up the company and no doubt he would recruit others as the company continues to grow. He has been a big part of the growth, with 11years service, thus providing good succession for the new owners. So, a purchaser would not just be buying 'assets' as such, they would be buying market penetration and an income stream/cash flow, with well above average margins and possibly incremental business, depending on the nature of the purchasers entity. Equipment: the company owns and operates an inventory of equipment and machinery etc. In the daily smooth operation of its business. All such inventory is expected to be included in a successful sales package.
