Teak Furniture And Fittings Export Company For Sale

[Sunbelt Asia]

This 40 year old export-only company is wholly owned by foreigners and requires no Thai partners. It is well known throughout the yachting and boating world for their high quality furniture, fittings and floorings. The business could be easily expanded into the interior industry such as kitchen and bath, RV and motorhomes, gifts and furniture.

Contacts have been established with a large Danish manufacturer of kitchen and bath rooms interior. A major sale has been completed with a Swedish company outside the marine industry. Contacts with old customers in US, Australia and New Zealand have been re-established by the new owners.

This company is fully licensed by the Thai Government to legally purchase, process, transport and export teak out of Thailand. These licenses are not given out anymore, only 5 companies currently have this license and this company is one of them. The company is licensed to purchase teak for any industry, it is also licensed for mahogany. The business includes all machinery necessary to process wood, a large stock of finished goods and a large stock of teak wood. In addition the company has a range of templates for production of teak products.

The business was established in 1972 and taken over by the current owners in 2010. The current owners doubled sales from 2010 to 2011 without an increase in total costs. The company has a warehouse and factory in Nong Khai and a warehouse of finished goods and office in Bangkok. Costs could be reduced further if the locations were consolidated.

The company currently has has 5 employees: two in Bangkok and three in Nong Khai with a monthly payroll ranging from 37,000- 52,000 Baht. The company pays a total rent of 60,000 Baht a month for both locations and the security deposit of over 170,000 Baht is included in the sale price. All fixtures and fittings valued at around 3.7 Million Baht are included as is the inventory valued at 1.4 million Baht.

The current owners bought it at this price in 2010 from the widow as it was cheap and the owner had died. They knew the previous owner as they were a client buying his goods.

They need to manage the core business in Sweden and have no time to manage this business in Thailand.

The business has a HUGE upside potential.

ASKING PRICE: 6.25 million Baht

(BKK14399)

[sunbelt][/sunbelt]