You fill that mold with steam, it expands into the, into the mold, and then you shape it and cut it from there. Or perhaps the mold is already shaped, but you can slice it up using hot wires from there. That's as. And then you ship and package and ship the product.
Acquiring Minds
A $800k Business to Start, $60m Portfolio Today
Excerpts · 235 segments · ~1:05:40 long
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One thing I'll mention about Trufoam, which really excited us and kind of caught some buyers off guard, you know, when you hear of quote, unquote, plastics business, some people who initially rejected Trufoam were saying, hey, this could be shipped from China. Like, you know, why, why is manufacturing still done in Canada? And the reason for that is within a 500 kilometer radius of your facility.
If you're delivering a product 500 kilometers, it costs as much to ship the product as it costs to manufacturer, including labor, product cost, overhead. And all of that stuff, and so absolutely cannot ship it from China. That would. That would be way too much in shipping costs.
These are really big, bulky products, and moreover, you can't even ship it from the nearest province.
So is there one of these in every state? In every province?
Exactly, yes. And there's two competitors within Atlantic Canada. So we're in three provinces within Atlantic Canada, Nova Scotia, Newfoundland and New Brunswick. And we've got one competitor. So, you know, can't get any better economic moes than that.
And what was the purchase price on the business?
So we bought the property as well. The business we bought for 19 million. The property we bought for 22 million.
One important factor is how this business was introduced, and we spoke a little bit about this. But since prosafe, I understood very clearly how important a really good operator is for a business. And I talked about those two avenues for how we now approach business acquisitions.
I put out a feeler to my network for anybody who, who, who, who's a fantastic operator. I, I would love to, to meet with them because at the time I was finding a lot of businesses that, that, that the owner wanted to retire and, you know, I wasn't willing to leave my job. And my business partner, current business partner, is running a business and doesn't want to leave that job either.
So a wealth manager that I knew really well introduced me to Josh Plamondon. And Josh ran a business here in British Columbia that does the exact same thing as Trufoam. And he didn't have any equity within that business.
And so first I was talking to him. We hit it off right away. He wanted equity within a business and wanted to make an acquisition.
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