Real Estate Available
Leased from third party
Qualified buyers will love to buy this 66% gross margin branded OEM fluid control products manufacturer. The owner is at retirement age and seeks a strong strategic buyer with excellent sales, marketing and distribution that would benefit from Hydra’s strong brand, recurring customers and distribution and rep channels. The Company’s consistent revenues and strong margins will tick upward in 2021 as a result of added sales resources. The Company is budgeting $6.4M in revs for 2021 with $2.55M EBITDA. Through April, the company is slightly ahead of this budget.
There are strong key managers within the company in sales, marketing and operations. The owner will support a 1-2 year transition, however ideal buyers will know the industry and not need significant period of seller support.
The company leases facilities from an independent third-party landlord. Should a strategic buyer want to relocate the operation into their existing footprint, they should allocate about 12,000 s.f. for Hydra’s operation.
Market Outlook / Competition
In Hydra’s tenure, it has consistently grown slowly over the years with 2021 benefitting from added sales resources in 2020 that are paying off today.
The Company has some competitors globally. It boasts high margins and competitive pricing. Today, the Company believes the annual market for its products are between $100M and $150M annually. With a strategic buyer with strong sales and marketing resources, it believes it can dramatically increase its market share above 15%.