NOTICE OF A BUSINESS AUCTION OF THE ASSETS OF A FULLY OPERATING LED LIGHTING MANUFACTURING COMPANY
STARTING BID: $1,200,000
This is a fully functioning and producing company that recently moved from a 5-year product development stage to a full operating company located in Port Orchard, WA. The Company can be relocated and all production and assembly equipment, fixtures and tooling were designed to be easily relocated. The assembly can be expanded with minimal capex required. This business is operating and will require a solid sales team to generate sales in this $100+Billion U.S. market and $300+ Billion foreign market in the area of HID lighting to LED (retrofits and new fixtures).
The Company’s products are both direct screw-in and bracketed lamps for replacing HID bulbs in outdoor fixtures (parking lots and garages, residential street lights, building wall and side packs, decorative acorn and globe fixtures) and interior fixtures (high/low bay fixtures and other interior applications replacing HID bulbs). The Company also developed and has all regulatory approvals for several new high/low bay fixtures—ready-to-hang. Other major proprietary items include:
- A 100w and 50w LED power supply/driver that is still one of the most compact open-frame power supplies in the market (innovated so that we had a manner in which to create the direct screw-in LED lamps)
- A patented spring-loaded contact that no other company has in the industry, that allows for 360° rotation of any of its direct screw-in lamps
- The Company has also innovated several of the most ingenious heat sink technologies, one where a copper core was cast into aluminum—and they said this could not be done!
- The Company has substantial additional IP and valuable proprietary items, including innovative lighting micro-processor driver/pcb to control usage, provide monitoring and communication capabilities
- The Company has completed 100% of the R&D and technical requirements for a full upgrade to the next level of efficiency and efficacy of all of its products. This data will be provided to the successful bidder.
The Company has received all required Regulatory approvals for the U.S., Canada and all foreign markets, except those that require additional approvals such as China and some UK and Middle Eastern countries. The Company has its products installed in hundreds of test locations around the U.S. and in a dozen foreign locations. The Company invested over $5 Million in R&D, tooling, testing and finished products and inventory. The Company’s products have received wide acclaim, have been recognized by the Bonneville Power Administration (BPA, a Department of Energy NGO) and its products are installed at the BPA headquarters in Portland, OR. Other very high profile installations have been awarded such as major sports arenas and the U.S. Border retrofit between the U.S. and Canada.
The founder/owner has decided to retire and an asset sale was chosen to best monetize the efforts in creating this timely and needed LED lighting business. Since revenue growth and go-to-market is just being implemented it was decided that an EBITDA sale would not provide the real value of the business. For a savvy investor or individual seeking a business that can be immediately implemented without the usual start-up, large inventory and capex expense, and begin to create additional revenues almost immediately, this is a fully built and ready to scale business opportunity.
In the past 4 months the Company has received more than 50 serious inquiries and that is why the owner has decided that the best method to sell the business assets is through a “First-price” Sealed Bid Auction. In a first-price sealed-bid auction, also known as a blind auction, all bidders submit sealed bids to the owner so that no bidder benefits from knowing the bid of their competitors. Each bidder can only submit a single bid and does not get an opportunity to change their bid price. In a buyer-bid auction, the highest bidder takes ownership of the business assets offered at their bid price. The value of the assets, IP and proprietary property far exceeds $2.25 Million. The starting bid will be $1.2 Million. All potential bidders will be given until May 29, 2018 to make arrangements to view the business and assets in Port Orchard, WA. The business is located in a 93,000 sf manufacturing facility owned by the Company’s founder. The successful bidder may elect to remain at the current facility under a lease to be negotiated after the sale is closed, or the assets/business may be relocated at the expense of the successful buyer. A non-refundable 10% cash deposit will be required of the successful bidder (essentially a cash bid-bond).
This offer to bid is limited and only being sent to those who have inquired about the business over the past 120 days, as well as 12 companies carefully selected in the LED space. The bidding will be closed on Monday June 1, 2018 at 5:00 pm Pacific Time. All sealed bids will be opened at 5:30 pm Pacific Time on June 1 and the successful bidder will be notified on Tuesday, June 2 by phone. Please see the attachments and Bid Form to be submitted. The Company will provide a full listing of the assets upon submittal of the attached fully executed and signed Non-Disclosure Agreement. There is no debt against the assets and all assets will be delivered to successful bidder at closing free and clear of any encumbrances. The business assets are sold all or none as this is not a failed business liquidation. Approximate Value of Assets and all patents and proprietary IP = US$2,250,000 – $2,500,000
ASSETS INCLUDED:
- $1,500,000+ of inventory
- $600,000+ of production & assembly equipment, tooling, stencils & proprietary manufacturing equipment and fixtures
- All custom-made assembly stations (8 total)
- Inventory & finished product racking, test equipment, burn-in racks
- 3 issued product patents and all proprietary IP
- All CAD and digital files for product manufacturing, tooling and assembly
Interested parties are welcome to call the President of the Company at the phone number below.
Richard Flaherty
President/CEO
Differential Energy Global Ltd.
1540 Leader International Drive
Port Orchard, WA 98367
Email: [email protected]
Office: 360-895-1184