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Multi-Location Dry Cleaning Operation on East Coast
| Businesses with Price Not Disclosed
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This opportunity consists of a well-branded and highly established dry cleaning chain operating within a ‘hub and spoke’ business model. The division utilizes a large centralized processing plant, or ‘hub’, to provide dry cleaning and laundry services to several smaller company-owned retail stores, or ‘spokes’, rather than each store having its own equipment and performing its own dry cleaning and laundry.
This division is located in Virginia and comprises eight non-franchised dry cleaning stores. In 2015, these units collectively generated approximately $2.6 million in sales and $0.9 million in EBITDA. This division also relies upon a centralized, company-owned dry cleaning plant that is responsible for the cleaning of all garments. The plant is used exclusively for this operating division and spans 30,000 square feet.
Motivation for Sale
The executive board engaged Generational Equity as a sell-side M&A advisor to bring forth prospective buyers that may be interested in purchasing either of the abovementioned divisions and its respective centralized cleaning plant. You are welcome to purchase locations independently or collectively, with or without the cleaning plants. Given the transaction will take form as a ‘carve out’, all necessary data has been extracted from the parent company and presented within a Confidential Information Memorandum (CIM). Upon execution of the non-disclosure agreement, a CIM can be provided for your review and consideration.
NDA Link (Copy & Paste in Browser to Sign):
About the Business
Contact the Seller
(1) Culture obsessed with service: “Clean clothes, on time, great service!”
(2) Lean Six Sigma focused operations that ensure clean clothes are ready on-time
(3) Less than 1% re-dos and claims – all handled quickly, fairly, and pleasantly
(4) Locations enjoy and high rate of deliveries being accurate and on time (99%+)
(5) Attractive locations with a history of performance
(6) Deeply Rooted Brand Awareness: The Company has continued to invest in building its brand on a regional basis. Through the development of services offerings (e.g. leather cleaning), coupled with an extensive operating history, each division benefits from new customer acquisitions and high levels of repeat business.
(7) Environmentally Friendly/Green: Management believes in leading the industry through ‘green’ practices and has implemented cleaning processes that remain free and clear of perchloroethylene.
Growth & Expansion:
(1) Expansion of Hub & Spoke Model: Management acknowledges the commercial cleaning plant in which the dry locations rely upon are currently operating at less than desirable efficiency. However, through the inclusion of additional dry stores, this presents an excellent opportunity for an investor to improve efficiency with no significant increase in upfront capital costs.There may be opportunity to downsize/right-size cleaning plant square footage.
(2) Marketing & Sales Development: Invest in marketing and sales teams to further grow business in commercial and industrial cleaning markets.
(3) Invest in Core Customer Proposition: Extend store hours and re-establish same-day service in select locations, freshen/remodel stores, etc.
(4) Invest in Employees & Strengthen Corporate Culture: Improve organizational communication around service-obsessed culture, hire sales manager to build wholesale capabilities, increase employee engagement with results-based/self-funded incentives, etc.
(5) Expansion of Service Offerings: Broaden service capabilities to include shoe repair, and handbag cleaning/repair. Continue to promote ‘green’ dry cleaning processes – which are gentler on fabrics and healthier for customers and the environment.
About the Sale
- Reason For Selling:
- Cash Flow Comments:
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