Specialty Plastics Colour Compounder – Recurring Revenue & High Customer Stickiness

Well-established provider of custom colour formulations, pigment solutions, and masterbatch products serving the plastics manufacturing industry across a diverse range of end markets including packaging, consumer products, and industrial applications.

The business operates as a trusted technical partner to its customers, delivering precise, application-specific colour solutions that are embedded into client production processes, resulting in strong repeat revenue and long-term customer relationships.

Ideal for a strategic buyer in plastics, compounding, or specialty chemicals seeking a technically differentiated platform with recurring revenue, strong customer retention, and meaningful organic growth potential.

Revenue: ~$4.3M
Adjusted EBITDA: ~$560K (~13% margin)
Highly recurring revenue with a long-tenured customer base
High switching costs due to custom formulations integrated into customer production
Strong reputation with many customers spanning 20+ years
Lean, efficient operation with direct-to-customer relationships
Only ~24% of production capacity utilized (significant growth runway)

Significant upside through:

Expanding sales and marketing efforts (currently relationship-driven, minimal formal sales function)
Increasing utilization of existing production capacity without major capex
Expanding into adjacent product lines (additives, specialty compounds, engineered polymers)
Leveraging technical capabilities into new customer segments and geographies

Total Sales: $4,300,000

Cash Flow: $560,000