30 Year Old Specialty Food Manufacturer + Distributor in Southeast US

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Swift ROI with predictable cash flow.
Asking Price:
$1,100,000

Gross Revenue:
$1,215,208
Cash Flow:
$166,716
(Seller's Discretionary Earnings)

EBITDA:
 Not Disclosed
Inventory:
 Not Disclosed

FF&E:
 Not Disclosed
included in asking price

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Business Description

The company is a successful business of over 30 years, selling handcrafted cotton candy and red candy apples to the Eastern portion of the US. It is currently up for sale to qualified buyers exclusively through Raincatcher. Cotton candy and candy apples are part of the confectionary industry, which is a $79.35 billion global market that is expected to register a CAGR of 3.5% between 2018 and 2023. North America dominates this industry, generating more than 7.7 billion pounds of candy each year. The company is the market leader within its state, and it is experiencing year over year growth both within its state and the region. The company provides an excellent opportunity for a buyer to enjoy predictable cash flow and a swift return on investment.

The company's products are sold to wholesale, retail, and online buyers. Unlike other cotton candy manufacturers, the company packages its products in clear plastic bags. This packaging adds nostalgia and it also allows customers to see exactly what they are getting when they purchase the product. Since buying the company in 2015, the company’s current owner has doubled the volume of sales. For that reason, the company expanded into a custom-built manufacturing facility in 2017 in a cooperative endeavor with its landlord, causing some growing pains for that year, but setting the company up for tremendous success thereafter. The company manufactures their products in-house at their new facility and then distributes to wholesalers. Customers can also purchase products online or by visiting their manufacturing plant.

For 2018, the company once again saw consistent growth with a gross profit of $ 451,746.72 and a discretionary cash flow of $166,716.02.  January of 2019 has already seen explosive growth, giving every indication that SDE will nearly double in the current year to approximately $330,000.  The company started a new wholesale account in January 2019 with a large, wintertime event organization.  The organization committed to have the company provide 50% of its needs in 2019, and after a successful 2019, the organization will move the other half of their accounts.  This is a perfect fit for the company, because winter is its slowest season, and this will help to level production throughout the year.  Once the remainder of the orders are committed for 2020, similar growth in SDE can be expected for 2020.

The company does not carry any long-term debt and provides a great opportunity for an individual or company interested in getting into the confectionary industry or expanding their current reach in this lucrative market.

Purchase Considerations:

- Well-established business of over 30 years.
- Long-term, quality staff that handles operations with minimal supervision.
- The company's revenue has grown 31.31% between 2016 and 2018
- With its new facility, the company has the capability to more than double its revenue before increasing its manufacturing capability further.
- A substantial new wholesale account started in January 2019 and is already causing an increase of more than 100% in SDE.
- Opportunity for strong margins.
- Substantial growth potential through online marketing.

The company is wholly owned by its seller who plans to exit the industry following the transaction and is willing to stay involved for a period of time after closing to assist with transitioning the business. The asking price is $1,100,000.

To learn more about this business, please click on the following link: https://listing.raincatcher.com/listing/se-food-manufacturer-disrtibutor/
and follow these steps:

1) Select "Login to Sign NDA" to the right

2) Select "Not a Raincatcher buyer member yet? Click here to create an account and get exclusive access to our premium business-for-sale listings..."

3) Enter your information and click on "CLICK HERE TO SIGN NDA"

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About the Business

Location:
South Carolina
Year Established:
1988
Number of Employees:
20
Real Estate:
Leased
Building Sq. Ft.:
7,000
Rent:
$3,914.00 Per Month
Facilities:
Leased – 7,000 sq. ft.
Website:
listing.raincatcher.com/listing/se-food-manufacturer-disrtibutor/
Market Outlook/
Competition:
The company has very little competition with its candy apples because of their price point. Most candy apple businesses focus on higher priced gourmet apples.
Growth & Expansion:
The company specializes in the production and sale of cotton candy and candy apples in the confectionary industry. The confectionery industry in the U.S. alone is a $54 billion industry that has grown by 1.8% from 2013 to 2018.
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About the Sale

Reason For Selling:
The owner wants to pursue other business opportunities
Training/Support:
Negotiable

Listing Info

ID:
1600465
Ad Detail Views:
0

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Business Listed by

Keith Marlow

Raincatcher
License# ER40012155

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