PRICE REDUCED – BUSINESS AND FREEHOLD NOW $1,750,000 + SAV
This is an asset-backed opportunity to acquire a long-established Brisbane steel fabrication, welding and machining business together with the freehold industrial property from which it operates.
Established more than 40 years ago, the business manufactures fabricated and machined steel componentry to customer drawings. Work includes repeat production runs, custom fabrication, brackets, frames, stands, assemblies, repairs and general engineering.
The business has built its reputation through quality workmanship, reliable delivery and long-term customer relationships rather than ongoing advertising or tendering.
LONG-STANDING PRINCIPAL CUSTOMER
A significant feature is the approximately 40-year relationship with a NYSE-listed multinational equipment manufacturer.
Orders are received almost daily against established drawings, part numbers and pre-quoted prices. Some components have been produced continuously for more than 20 years. A written supply agreement is in place, with the customer’s identity, agreement and order history available to qualified buyers under confidentiality.
FINANCIAL HIGHLIGHTS
• Gross margins maintained between 65.4% and 69% over three financial years
• Higher-value production processes completed in-house
• Twelve consecutive quarterly ATO Activity Statements available
• Established repeat-order and part-number system
FABRICATION AND MACHINING CAPABILITIES
• CNC milling and machining
• Steel cutting and profile cutting
• Guillotining to 8mm plate
• Brake-press forming and bending
• Welding and fitting
• Automatic sawing and docking
• In-house painting and finishing
• Delivery using company vehicles
Specialised processes such as sandblasting, anodising and powder coating are outsourced to established local suppliers.
SUBSTANTIAL PLANT AND EQUIPMENT
All listed machinery, vehicles and workshop equipment are owned outright and included in the sale.
Key assets include:
• 2022 Milltronics VM2515 machining centre
• Profile-cutting equipment
• Guillotine and brake press
• CNC mill, lathe and large drill
• Automatic band saw and general saw
• Fronius welding equipment
• Paint booth with extraction
• Forklift
• Isuzu NPR200 truck
• Mazda BT-50 ute
• Workshop tooling and office equipment
337M² BRISBANE FREEHOLD
The business operates from a 337m² freehold industrial unit in Seventeen Mile Rocks, within Brisbane’s established western industrial corridor.
Property features include:
• General Industry zoning
• Roller-door access
• Hardstand and on-site parking
• Workshop and production areas
• Office accommodation
• Upstairs storage
• Mains water and sewer connection
The freehold removes lease, relocation and landlord risk while giving the buyer long-term control over the operating premises. The vendors have allocated $1,300,000 of the asking price to the property, representing approximately 74% of the total price.
STAFFING AND TRANSITION
The business is currently family-operated by two workshop operators and one part-time administrator.
One owner intends to retire. The other two owners are prepared to remain for a negotiated period on wages, providing continuity and assistance with customer introductions, drawings, part numbers, pricing, job costing, suppliers, production procedures, administration and invoicing.
A buyer does not necessarily need to hold trade qualifications but will require suitably qualified fabrication capability within the business from day one.
OPPORTUNITY FOR FURTHER GROWTH
The workshop currently operates a single Monday-to-Friday day shift with no weekend production. The property and machinery have the capacity to accommodate approximately two additional tradespeople.
Further opportunities include:
• Diversifying the customer base
• Targeting manufacturers, engineering firms and trade clients
• Introducing a professional website and Google Business Profile
• Expanding custom fabrication and small-batch production
• Adding a second shift or weekend production
• Increasing utilisation of the existing machinery
• Leveraging the established drawings and part-code library
There is currently no website, social media presence or structured advertising program, yet the business continues to receive unsolicited custom-work enquiries.
SUITABLE BUYERS
This opportunity may suit:
• An established engineering or manufacturing company seeking additional capacity
• A fabrication or machining business wanting to acquire its own premises
• A trade-qualified buyer seeking an established operation
• An investor-owner able to retain or recruit qualified workshop personnel
• A related business seeking vertical integration or expansion into Brisbane
SALE INCLUSIONS
The sale includes the freehold industrial property, business goodwill, customer relationships, drawings and part-code records, plant, machinery, vehicles, workshop equipment and an agreed transition.
Stock at value and work in progress are additional and assessed at settlement.
REASON FOR SALE
The business is being offered for sale as part of the owners’ retirement.
All enquiries must be directed through Taylor Business Brokers. Contact Patty Taylor to receive the confidential Information Memorandum and arrange the next steps.