Welding & Engineering Ltd, a large Christchurch industrial company, is for sale as a business operating within leased premises to the southeast of the city.
"The owner of this business has taken the time to build a well-oiled machine but is now looking to move on," says James Sheppard of ABC Business Sales in Christchurch who, with his colleague Alex Ingrosso, is marketing the business for sale for an asking price of $2,850,000 plus stock.
"The company specialises in structural and architectural welding and fabrication; and its plant and equipment are valued at over $1.2 million with a significant amount of forward work on the books," Sheppard says. The firm's workshop produces a wide variety of products from basic connections through to large structural frames used for remedial earthquake-strengthening of major building projects in Christchurch and on new-build structural frames.
Employing the firm's extensive engineering department, the company works alongside its customers to deliver the best design solutions; and provides architectural and structural engineering services to both the commercial and residential construction sectors. The workshop manufactures large steel beams using laser fusion technology and in-house plasma cutting which enables engineers and metal buyers to mix thickness or even material grades. All steel structural beams can be cut to size.
Sheppard says the vendor will retain ownership of the land and buildings housing the company and is prepared to negotiate a new lease to suit the requirements of the business purchaser.
"A feature of this business is its specialised team of 20 dedicated and experienced staff members who have the ability to work with large, varied and quite complex structures. Over the years this business has been forged into a formidable player in the Canterbury market and is performing strongly generating a seven figure annual cash surplus.
"When buying a well-managed business like this, the value lies in its people and their skills; and it's the firm's team that can make or break its success. In this regard the culture within Welding & Engineering Ltd puts a real emphasis on work quality. Contractors choose this company's services because of that, and because they produce engineering solutions, deliver projects on time and within cost expectations."
Sheppard says that despite fluctuations in the wider Canterbury economy, the business has remained strong and "returns are at a highly desirable level".
Ingrosso adds that the company could be a perfect 'bolt-on' to an existing business seeking to establish a Canterbury base. "With a well-run and qualified team in place, this sale represents an ideal opportunity for another business looking to expand into the South Island. The work required to transition into this operation would be much less than setting up a whole new venture.
He says the clients of Welding & Engineering Ltd receive the benefit of robust internal Quality Assurance policies and procedures which are managed in-house by qualified staff. "This includes auditing of installation and accurate paperwork through to signing off on all fabricated work."
At the completion or part-completion of a job, work is accurately checked and recorded completed on Quality Assurance forms. These forms are made available to the detailed design engineer and main building contractor as part of the certification process. If remedial work is required, Welding & Engineering's management team issues the appropriate Quality Assurance forms to the relevant parties to confirm that the work has been undertaken to the required standard.
Ingrosso says that over the past four years, the firm's knowledge and experience on successful projects with companies of different sizes and sectors has been fortified because of its undertaking significant and specialised work. Some of the well-known completed projects include work completed for the Ministry of Justice, Burwood Hospital, Sumner Surf Life Saving Club, Owens Transport's distribution facility, Canterbury University, New World Redcliffs, the Hub Hornby and for Countdown Supermarkets.