Business Overview
About the Company
Growing Segment of the Economy with Product Diversification Occurring Rapidly
Opportunity to extend and expand a rapidly growing manufacturer of specialized equipment focused on vape, CBD, cannabis, and tobacco related products. This company's revenue 4 year CAGR (i.e., Compounded Annual Growth Rate) is 69% per year.
This company does NOT touch any plants. They sell to third party processors who run their equipment.
This company has a stronghold for selling highly efficient and fully/semi-automation and other labor saving activities for their customers. Their unique approach for providing ongoing technical support is achieved by their unique approach to their operating software and use of micro camera aided computer intelligence throughout their equipment and processes. Their technical prowess allows management to view the real time activities of all installed machines across the globe.
This is a fast growing business. 2023 Sales are expected to close at $5.4M up from 2022 sales of $3.6M up 50%. 2021 sales ended at $1.7M in 2021 which grew by 105% from $650K in sales in 2020. Adjusted EBITDA as a percent (%) of Sales exceeds 30% in 2023 Year to Date. This is a highly profitable company and well managed operation throughout.
The company just released a new product that starts shipping February 2024 with pending orders already pre-sold for dispensing dabbing. They are the first to the market. They expect this product to match their top selling cartridge filling machine.
The US still has over 27 states pending legal recreational cannabis and the rest of the world has plenty of space to expand into. Cannabis manufactured products are expected to grow to $28 Billion globally at a 14% CAGR by 2031 according to Transparency Market Research.
This company recently relocated its manufacturing operations to a larger facility. They signed a three year lease ending in December 2026 for 7,000 square feet.
Note, the sales price includes inventory on hand of $550,000 with an adjustment done at closing for any delta's.
