Empire Closes Another Transaction
Empire Business Solutions, a leading Business Broker and M&A Company in Orange County, California is please to announce the sale of American Machinery and Blade.
Huntington Beach, CA 92647, July 31, 2015 (Newswire.com) - Empire Business Solutions, a leading Business Broker and M&A Company in Orange County, California is please to announce the sale of American Machinery and Blade, Inc (AM&B) of Paramount, CA to Robert and Mathew Sprowls. effective June 1, 2015. Al Roebuck sold 100% of his stock in AM&B to Robert and Mathew Sprowls who own several other businesses in Southern California.
American Machinery and Blade (AMB) have been specialist in the metal fabricating industry for over 33 years. Al Roebuck founded the company in 1982 and has built the business into the leading source in Southern California for metal fabricating machinery, tooling, supply items and parts related to the use of this equipment. The "blade" in their name is how they started the business and have become a major band saw blade wielding center, offering fast deliver and high quality on bi-metal and carbide tipped band saw blades.
Machinery that sells between $10,000-$100,000 account for 20% of revenues. Machinery selling for $1,000-$5,000 is 30%-40% of the revenues and supplies account for approximately 20%-40%. Major suppliers are Lenox, Megafab, Hydmech, Evolution, Fein, Ercolina, WF Wells/Wellsaw, JMT and Schotchman. Machinery is often sold on a 15%-20% margin. Tooling items are market flexible at 20%-40% margins. Parts are mostly 20% margins. In 2014, machinery represented 60% of revenues and supplies 40%.
The geographic market serviced by AMB is Los Angeles County (74%), Orange County (10%) and Inland Empire (10%) with the small balance coming from surrounding counties. AMB has over 3,000 customers in their database and 1,000 of these are repeat customers which represent 80% of revenues. Only one customer represents 5% of revenues.
Revenues for AM&B were almost $2.0 million in 2014 and projected to do the same or more in2015. The company rented a 5,000 sq ft facility in Paramount, California in an industrial park. The new owners plan on moving the business to Huntington Beach in the near future to a building they own.
The motivation for the sale was retirement for Al Roebuck and his wife Nancy who also worked at the business.
Empire Business Solutions is a leading Business Broker and M&A Specialist in Orange County since 2005.
Contact Roy Moss, President of Empire Business Solutions at 714-374-6430 to discuss the process in selling or buying a business in Southern California.
Empire Business Solutions has been a leading California Business Broker and M&A Specialist since 2005 particularly in the Orange County and Los Angeles County area. Empire specializes in representing sellers in Southern California who want to maximize the value of their business and are motivated to sell. For more detail visit our website at www.empireoc.com