Business for Sale Overview:
The company’s business is the remanufacturing (secondary manufacturing) of lumber products primarily used in the construction industry or for treated lumber products. Utility, #3, and economy grade lumber is purchased from sawmills throughout the US and Canada, brought into one of the company’s plants and then processed to add value by ripping, trimming, sorting and re-grading. Finished products are sold to lumberyards and builders across the country. Profitability is derived through the pricing spread between the purchase of raw supply and the sale of the remanufactured products. Housing recovery creates market opportunity to scale production quickly and remain 1 of only 2 soft wood re-manufacturers in North America.
For more information regarding this listing please contact us by completing the "Contact the Seller" form below. We look forward to hearing from you.
Property Features and Assets:
The company has rebuilt or green field constructed three highly efficient manufacturing facilities, each of which has been designed to be best of breed in the industry and each of which has been maintained in A+ condition. Substantial capital improvements and labor training invested over the past four years have positioned the company to scale rapidly and gain immediate efficiencies (as measured by cost per thousand board feet of production).The company’s expertise lies in the optimized production design for each of its plants and the significant investment in labor that management has made over the past 12 years. Management is confident in claiming that they are operating with high efficiencies as measured by cost per thousand board feet of production.
Market Competition and Expansion:
The industry is mature and increasingly efficient due to the consolidation into larger mills and shift towards secondary wood products that occurred as a consequence of two severe economic downturns experienced in the early 1980’s and 1990’s. This industry is now moderately concentrated with the top 50 companies holding about half the market share, and moving toward a high degree of concentration. A limited number of independent remanufacturing plants purchase lumber from sawmills, and then add value to it through a variety of operations, including ripping, cross-cutting, molding and re-grading. The value-added sector includes all secondary wood products manufacturers that add value to commodity wood products by further processing them into specialty finished or semi-finished products. The value-added sector of the industry has been contributing most of the growth over the past ten years, offsetting a more substantial industry decline that would have otherwise occurred.
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- The owner is not willing to work for the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
- This is a distressed business or bankruptcy situation.
Contact the Seller:
To contact the seller of this business for sale, please complete and submit the following email form. The seller or broker will be in touch with you typically within 1-3 business days. Fields with an asterisk (*) are required.