Following 30 years of operation, a Northland wastewater system manufacturer, Waipapa Tanks Ltd (WTL) is for sale.
The business is being brokered by Marcus Jacobson, Shelley May and Pauras Rege of Colliers International.
"WTL has an established brand presence, consistent earnings, existing work force and sales networks - and it is projected for expansion," says Jacobson.
Northland's growth outlook remains positive, supported by ongoing accommodative monetary policy, strong population growth, and high levels of household spending and construction activity, he says.
Present economic conditions look particularly favourable for buyers wishing to acquire a growth business servicing the construction sector, such as WTL.
Based in Kerikeri, the family owned-and-operated business has built an excellent reputation for its complete package of design, manufacturing, installation and maintenance of wastewater treatment systems and tanks, he says.
WTL is one of only three companies out of 46 aerated tank manufacturers that produce tanks and systems compliant with stringent tests for the sensitive Rotorua Lakes catchment area.
The company has passed environmental testing standards at the National Test field, guaranteeing protection of the environment using modern treatment techniques.
"The National Test field is a government-backed initiative to establish a facility that can monitor and test all Waste Treatment Systems.
"Moving forward, only systems certified by the Test Field will be approved by all councils throughout New Zealand. WTL fits perfectly in this category as all systems are appropriately certified and this business is also a perfect fit with the Northland Region," says Jacobson.
The population and number of households in Kerikeri and Waipapa are projected to double over the next 10 years, which will make this n one of the fastest growing areas nationwide."
He says the FNDC Activity Management Plan projects that by 2021, the Far North's resident population could increase by more than 17,000 people.
Kerikeri, Bay of Islands, Doubtless Bay, Ahipara and Pukenui-Houhora and Opononi-Omapere are predicted to be the major growth areas, and over the next 20 years, these areas will account for 74 per cent of the district's population growth and around 72 per cent of growth in household units.
Standing on 1.5ha of land, zoned for rural use, the business at 166 Waipapa Rd, Kerikeri, presents purchasers with an opportunity to re-develop the land in the future.
Jacobson says there is an opportunity for an established business with high economies of scale in the wastewater, tank manufacturing or similar sector to grow the Waipapa Tanks business.
"WTL's skilled workforce continues to guide the organisation through successive stages of growth. The company's broad customer base contributes to the consistent revenues from individual homes owners, drainlayers, developers, food premise owners, engineers, schools, hospitals and entertainment facilities," he says.
WTL's operational business environment is experiencing growth and due to pressure from government and local regulations, heightened public expectations to improve both the manufacturing sector and business servicing the construction sector.
Jacobson says in the face of growing population, urbanisation, and improving manufacturing activity, the business is set for positive change and in turn development at all levels.
"Combining certified systems, along with a skilled workforce and existing sales networks, there is an opportunity for the astute buyer to enter into a strong position in high-end markets where expansion is inevitable."