Business Summary:
PRICE REDUCED! This company was established in 1972 and has evolved into a waste wood recycling business, specializing in custom wood fiber. The owners have built the business to approximately $2.5 million in revenue over the past thirty-five years and are now ready to sell and retire. Revenues are projected to increase $800,000 per year over the next five years; current cash flow of $200,000 plus should increase dramatically as well; asking price is $1.3 million and all property is included in the price. The Real Estate value is $330,000.
Located on 11 acres in the industrial park of a small community in NW Arkansas, the co. sells poultry & livestock bedding, horticulture mulches, wood flour, fiber bulk, boiler fuel & wood talc.
Oak fiber and sawdust has been the primary driver of sales, with wood flour and mulch rounding out the top three. The company has experienced a compound growth rate of approximately 8 percent for the 2004 through 2007 time period. Sales are expected to significantly increase in 2008 due to their recent approval as the major wood fiber provider for a biomass pellet fuel manufacturer. Other growth in revenue will be driven by additional production in wood flour and there is an opportunity to become a distributor by exploiting a strategic opportunity with a wood pellet manufacturer.
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