Has anyone closed on a company using toll manufacturing?

August 01, 2025
by a searcher in Illinois, USA
I'm exploring a small (~$500k SDE) sealants and glues manufacturer that looks quite interesting. All formulas/IP are proprietary, but everything is toll manufactured..ie. outsourced. Branding/name recognition in the market seems pretty solid, as far as I can tell.
Are these viable for acquisition, and more importantly, scalable? Curious if anyone has looked at or closed on a firm utilizing toll manufacturing. Seems like its effectively a distribution / ecommerce model.
I like the idea of moving production in-house, just not sure of the feasibility or cost.
in Austin, TX, USA
in Philippines