Vertically Integrated Hardwood Sawmill & Logging Operation | Central PA (38085)

Price: $8,500,000
Revenue: $4,530,000
Adjusted Cash Flow: $294,000
Location: Central Pennsylvania
Revenue: $4,530,000
Adjusted Cash Flow: $294,000
Location: Central Pennsylvania
An exceptional opportunity to acquire a premier, highly integrated, and long-established forest products company operating in the heart of the premier Appalachian hardwood region. With over 44 years of operational history, the Company offers a rare vertically integrated model, controlling the entire process from raw material procurement to finished industrial and high-grade lumber production. This structure provides a "de-risked" entry point into the supply-constrained U.S. hardwood market.
INVESTMENT HIGHLIGHTS
- Captive Log Supply: The integrated logging crew mitigates the industry’s #1 risk—log procurement. The Company ensures a consistent, captive supply of high-quality Appalachian hardwoods (Oak, Maple, Cherry) while competitors struggle with logistical and cost hurdles.
- Recession-Resistant Product Mix: Revenue is anchored by high-demand industrial-grade materials (pallet stock, railroad ties, and rough-cut lumber), providing a stable floor that insulates the business from the volatility of high-end furniture and flooring markets.
- Strategic Regional Dominance: Four decades of local brand equity provides an unmatched advantage in negotiating standing timber purchases from private landowners, securing raw materials ahead of larger, distant competitors.
- High-Margin By-Product Streams: Established revenue centers for firewood, mulch, sawdust, and chips, with significant opportunities to grow revenues.
- Asset-Backed Value: Substantial inventory of standing timber contracts, and a robust fleet of logging and sawmilling equipment, including recent 2021 sawmill upgrades. Fleet of well-maintained vehicles and trailers, and to its own onsite gas pumps.
GROWTH OPPORTUNITIES
- Efficiency Scaling: Immediate opportunity for a buyer to invest further in a modern resaw and automated scanner/sorting system, to greatly increase lumber recovery rates, improve operational efficiency, and significantly improve profitability and valuation.
- Increase Mulch Production: The land can accommodate a significantly increased, in-demand mulch production facility.
- Premium Grade Optimization: Enhanced focus on separating and grading high-value Appalachian species to capture premium FAS/Select market prices.
- Timber Lock-in: Use the existing reputation to secure ongoing, fixed-rate timber contracts, ensuring price stability during market fluctuations.
KEY FINANCIAL & OPERATIONAL METRICS (2024)
- Total Revenue: $4,530,000
- Gross Profit: 22%
- Seller’s Discretionary Earnings (SDE): $294,000 (Rounded)
- Location: Central PA Hardwood Corridor
- Competition: Limited local product competitors
- Infrastructure: Complete integrated sawmill facility, logistics, and dedicated logging procurement crew.



