Company Overview
American HealthCare Capital is pleased to introduce a high-quality glove manufacturer for sale, focusing on the design, manufacturing, and distribution of nitrile and specialty gloves. This well-established company is a leader in the production of polymer products for hand protection and contamination control. They specialize in advanced polymers and manufacturing of Isolator/Dry Box Gloves, Medical Nitrile Exam Gloves, and Medical/Industrial/Cleanroom products. The company is located in the northeast and has been one of the top producers of Nitrile and Specialty Gloves in the United States for over 60 years.
The nitrile glove manufacturing industry plays a crucial role in the global healthcare sector, providing essential protective gear for medical professionals, pharmaceutical compounding, laboratory workers, electronic chip manufacturing, cleanroom operations, and various other industries. Nitrile gloves, made from synthetic rubber, have gained significant popularity due to their superior strength, resistance to chemicals and natural rubber allergens, and excellent barrier properties. Approximately 95% of global nitrile glove production takes place in Asia with less than 2% of the global production being made in the USA. The pandemic and supply chain disruption brought to focus on Onshore PPE production and the need for increasing the domestic manufacturing capacity. The recently enacted “Make PPE in America Act” further supports the US government’s commitment to onshoring manufacturing for critical medical/military products.
Financial Overview
The nitrile glove manufacturer in the USA was awarded $70.5 million from the US Defense Production Act program to expand glove production capacity in the US. Upon the successful completion of the expansion, the Company will utilize 14 in-house production lines producing 1 billion gloves per year. This includes 4 high-speed lines with annual production of 800 million gloves per year plus 10 flexible lines with annual production of 250 million gloves per year. This will be housed in a 200,000-square-foot facility on 22 acres of land. The Company needs $40 million of funding as “finishing funds” for the facility (Phase 1) to augment the USG’s investment. This high level of volume with today’s automation will lower the cost significantly and be more competitive with offshore pricing. The Company has a robust sales pipeline including two LOIs in progress for up to 20% of the capacity with options for increased growth.
There are also plans for Phase 2 to produce an additional 3 billion gloves per year. This will be manufactured in a 250,000-square-foot facility with 14 high-speed lines. The Company has the opportunity to be one of the largest specialty and nitrile glove manufacturers in the USA within the next several years.
The company currently has approximately $60 million in assets including Real Estate. Upon funding $40 million for the completion of Phase I expansion program, there will be $100 million in asset value. This is forecasted to generate $97 million in revenues at a 23% EBITDA margin. The company will then begin phase 2 for the manufacturing of 3 billion additional gloves per year. The company is committed to On-Shore PPE production with plans to expand to 4 billion gloves. This will result in strong market cap valuations.
Staff Overview
There is a full complement of staff that is expected to stay on under new ownership. The owner is looking for a strategic or financial partner to add value through its connections, financial strength, and resources to grow the Company to the next level. Therefore, the owner will consider a majority equity sale while remaining with the Company for further growth opportunities.
Asking Price
The asking price for this specialty and nitrile glove manufacturer in the USA is to be determined based on the interests of the prospective investor plus the value of the Real Estate, with or without an Earnout Going Forward.
