Business For Sale. Granite Sink Manufacturer

This Manager-run company was first established in 1967 as an engineering and manufacturing concern. After a few years in business, activities expanded into the manufacture of sanitary ware and in 1977, the company started manufacturing high-quality granite kitchen sinks.

The methodology used involves resin transfer injection moulding rendering the nature of the business highly specialized. This process requires purpose-built tooling and machinery which comes at significant cost.

The current replacement price of manufacturing plant is in excess of R5.0 million which insures its relative exclusivity presenting significant barriers to entry.

The business is very well known in the industry and especially popular with homeowners who are particular about colour coordination in respect of sinks complimenting kitchen colour and design rather than settling for the traditional stainless steel sinks.

The Seller has some 85 units on display in merchant showrooms across the country and these outlets would typically be the likes of Builders Warehouse etc.

Up until now, the business has been housed in premises which belonged to the Seller however; these have now been disposed of such that, the business will have to be relocated.

That said, the premises that were being used were totally under utilized (far bigger than was required) and itâ??s the Sellers opinion that a facility of +/- 500 sqm would be more than adequate in size and a lot less costly in rentals.

The company has its own website and approximately 90% of sales are through kitchen companies and builderâ??s merchants while the balance is sold directly to the public attracting better margins.

The price as advertised excludes stock (displays, finished product and raw material) of +/- R600 000.

For more information, kindly contact the listing Broker.