Hot Listing

Niche Steel Fabricator- Modular Data Center Structures--On Hold

Asking Price$18,000,000

Cash Flow
$3,000,000

EBITDA$2,991,000

Gross Revenue$21,500,000

InventoryNot Disclosed

FF&ENot Disclosed

Real EstateNot Disclosed

Aerial view
Python
Auto-feed blaster
60' Powder Coating Oven
Downdraft booth
Aerial view
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Hot Listing

Niche Steel Fabricator- Modular Data Center Structures--On Hold


Asking Price$18,000,000

Cash Flow
$3,000,000

EBITDA$2,991,000

Gross Revenue$21,500,000

InventoryNot Disclosed

FF&ENot Disclosed

Real EstateNot Disclosed

Business Description
I represent a steel fabricator/manufacturer which has developed a niche in fabricating steel modular data buildings/skids. Since focusing its direction on the Modular Data Center market, this market absorbs about 65% of the fabricator’s current sales volume. And over the past 5 years, sales have increased over 40%, and its EBITDA has averaged over 13.5% of sales over this time. And the future outlook is very strong considering the growth of the Modular Data Center market. Since 2018, this company has built and shipped well over 400 modular data center structures, both nationally and internationally.
Its customers are impressed with the one stop shop for fabrication as its 250,000 square foot space houses all the equipment and tools necessary to deliver a fully painted completed project, whether the contract requires powder coating or wet paint. Yes, it has a 60+’ powder coating oven and a newly installed drive through 70+’ wet paint booth, along with a downdraft booth. The company’s coatings specialties and heavy weldment abilities enables it to also serve local OEMs.
The owner has made significant investments in this Division to maintain its position in the
marketplace as a full-service vendor for its customers. There is no manufacturing/ fabricating company in this area that offers this company’s wide range of capabilities and services.

More recent investments made specifically for the modular data center market include a Python X Structural Fabrication System, an automatic feed sandblaster booth, a 60’ long Rohner powder coating oven, and a 72’+ drive through wet paint booth. The company also invested in 2 new lasers-one for plate cutting. These equipment investments have made the fabrication shop more efficient and have increased margins.

Additional equipment and tooling include 20+ Lincoln welders, Doosan CNC, Okuman Macturn 550-W Mill/Turn, Cincinnati Hypro, Trumpf laser, Muratek laser, Koike Plasma Table, forklifts, scissor lifts, air compressors, powder coating line, shot blast booth, etc. The company also owns various CNC mills, radial drills, lathes, 3 brakes including a Baykal 420 Ton, Trumpf Truelaser, Messer plasma table, saws, threaders, and many other machines to complement its full line of capabilities. The shop is equipped with over 50 overhead and jib cranes throughout the facility. A complete asset list is available.

Its certifications include:

• ISO 9001:2015- the worldwide standard that sets requirements for Quality Management System.
• AISC 207-20- the certification requirement for hydraulic structures based on expert recommendations.
• AISC 420-10- the certification standard for shop application of complex protective coating systems.

• Location- 75 miles north of Washington, DC. Key customers and market areas are located nearby.
• Attractive Financial Profile- Stable profits, strong free cash flow, superior EBITDA, and strong 2025 backlog
• Owner/ Manager- Motivated and ready to retire and has built a well-respected 40 year old business.
• Growing Market Segments- The need for data centers is projected to grow for the next 7 years and longer. Its business with local OEMs continues to grow.
• Strategic Alliance- This corporation is positioned for explosive growth with the right new strategic owner who can maintain and broaden its customer base.
• Growth- An opportunity to acquire not only revenue, assets, and profits, but also experienced human capital. Most of its business is word-of-mouth and repeat customers. There has never been a sales team.
• Facility- Capabilities are unmatched in this area and real estate is available for long term lease or purchase. There is a PowerPoint presentation available which shows the capabilities of the 250,000 square foot manufacturing facility. Total facility has over 700,000 sq ft under roof situated on 34 acres with 12 acres of open space.
About the Business
Years in Operation
40
Employees
100
Facilities & Assets
ON HOLD. UNDER LOI DUE DILIGENCE. The Manufacturing Company utilizes 250,000 square feet under roof of the 700,000 total for the entire facility. It is located on 34 acres with about 12 acres of open lay down space. The 250,000 square feet is available for long term lease or the entire facility is available for purchase. The facility generates $500,000 in annual rental income.
A complete asset list is available. Some equipment is described in the listing.
Market Outlook / Competition
In the modular data center market, the company has an 8 year relationship with its primary customer. In the OEM market, its relationships are considerably longer. The company is well known and respected in its market area. The capabilities of its facility stands heads and shoulders above any other fabricator in the area.
Opportunities for Growth
The Modular Data Center market is projected to grow over the next 7 years.
Real Estate
Owned or Leased
Owned
Not included in asking price
About the Sale
Seller Motivation
Owner and sons retiring
Transition Support
Owner is available for short term employment contract to help with transition.
Financing Options
Owner will not carry note.
Listing Info
ID
2332628
Listing Views
3833

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Business Listed by: Douglas Phelps

Listing ID: 2332628 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.