An advanced, award winning engineering materials group, in business for 30 years, is exploring divestiture of its start-up division - a bio-based construction materials company with a recently commercialized world-class technology and a commercial production facility, located in Alberta, Canada. The company, offered for sale, owns a unique, advanced, proprietary technology for production of high performance natural (industrial hemp) reinforcing fiber for the cement / concrete / well drilling / well cementing / asphalt / plastics / composites market with a very significant world-wide growth trend. The envisaged business model is to manufacture, sell and install around the world the exclusive turn-key business lines for production of the exclusive, proprietary products, with subsequent supply of proprietary compounds for the products manufacture. Thus, this is a quasi-franchise business model. The potential market for the exclusive business lines is estimated in the hundreds and with only 5% concrete market penetration in Canada and the US is estimated to be at $500 M for the initial installations of the turn-key lines (Mani-fold world-wide) and then a recurring, captive market of $20-30 M annually (Mani-fold world-wide) in the proprietary supplies for the production.
The company owns an R&D materials laboratory and employs a compact, highly specialized professional staff.
The asking price for 100% of the company shares is US20M – mostly for the goodwill of future earnings. No further investment is required into company development (other than a working capital) as a multi-million dollar investment has already been made over the last several years into the technology development, the full independent due diligence CSA / ASTM expert testing, engineering and construction of the first turn-key facility and the market test of the product. The investment has been internally funded – no debt whatsoever – and the company is ready to move forward. The contemplated divestiture is motivated by other recently opened opportunities for the group. Serious inquiries only.
Synthetic fiber; glass fiber
Yes, world-wide. Please, see above business description