Established engineering business with its own premises, CNC machining and electroplating

Basic information

The subject of the sale is a 100% stake in a Czech engineering company that has been operating for more than 25 years. The company is based in the Ústí nad Labem Region and owns two production sites.

The business rests on three complementary pillars. The first is precision CNC machining of ferrous and non-ferrous metals and plastics for medium and larger production runs, supported by CAD/CAM and 3D measurement on a coordinate measuring machine. The second is in-house production of cutting and mining tools, namely turning tools with brazed carbide tips and tools with hard-metal inserts, a line of business the company started with. The third pillar is in-house metal surface treatment, specifically galvanic zinc plating, nickel plating and chrome plating, plus aluminium anodising on an automated line in both decorative and hard finishes, and a powder coating shop. This combination is relatively rare on the market, because the company can take a part from machining all the way to final surface finishing under one roof.

The production mix has been stable for years. Metal machining accounts for the majority of turnover, with the remainder split between surface treatment and in-house tool production. The company is therefore not dependent on a single technology or a single type of demand, which is reflected in consistently balanced results.

The customer base consists of long-term clients from the Czech Republic and other EU countries, with part of the output going outside Europe as well. Relationships with key customers are long-standing and repeat in nature, and with most of them the cooperation has lasted well over ten years, which is above average in precision engineering.

The company owns two production sites with a combined land area of nearly 30,000 sqm, of which the built-up area is roughly 6,500 sqm. The larger site also includes a residential rental building. The machine park comprises three-axis and five-axis CNC turning centres, milling machines and machining centres, surface and vertical grinders, a paint booth and complete lines for electroplating, zinc plating and anodising. In recent years the company has invested in a robotic workstation and a new five-axis machine. Both sites have their own photovoltaic system with battery storage and their own transformer station, which noticeably reduces energy costs, one of the most significant cost items in this type of production.

Financially the company operates in a stable band. In recent years revenue has stayed between CZK 65 and 80 million; in 2025 it reached 3.0 mil. EUR with EBITDA of 335 ths. EUR, corresponding to a margin of 11.3 %. The turning point came in 2023, when the company markedly improved profitability on lower revenue, and that level has held since. Inventories at the end of 2025 stood at CZK 21.7 million, of which material accounted for CZK 15.0 million and finished goods held in the customer warehouse for CZK 6.5 million.

The company employs 45 people including both managing directors, with production split into three teams matching the three pillars, each under its own production manager. Quality has long been backed by a certified management system under ISO 9001, which the company renews regularly.

The reason for the sale is the age of both owners and succession planning. The owners, who have held the company in equal halves from the start, want to hand over management to a new generation of owners and are prepared to give the new owner a transition period for the handover of know-how and customer relationships.

The largest untapped opportunity lies in sales and marketing. The owners have never actively approached the market; all orders came through referrals and long-standing reputation. A new owner who adds a sales team and starts promoting the company systematically therefore has room to grow without changing the production core. A second opportunity is the capacity of the sites, which offer space to expand production, and a third is the surface treatment division, which meets demanding regulatory requirements and represents a barrier to entry for competitors.