Established Gourmet Food Manufacturing and Distribution Business for sale  

This unique business was born out of the kitchen of the owners in 2002. In 2008, the business started a small production facility which quickly grew, from a small factory sharing space with a sister company, to occupying 2 HACCP specified manufacturing and processing factories today.

This business is a first-class provider of, amongst other products, gourmet deli pesto’s, patès, flavoured mayonnaises, mezes, dips, rollmops and spices. The products are produced locally in St. Francis Bay and are distributed throughout the Eastern Cape, Western Cape and Gauteng.

Today the business’s products are stocked in selected retailers along the Garden Route, selected stores in Cape Town and surrounding areas, the Eastern Cape Inland at selected retailers in the Karoo, Port Elizabeth and East London.

The business currently supplies approximately 110 major brand retail outlets within its current operational footprint, which includes Spars, Pick and pays, Food Lovers Markets, selected restaurants and farm stalls.

The business’s operations have now reached a point (especially since its expansion into the Western Cape) where it needs to be taken to the next level. The current owners feel that they are the wrong people to continue with this (see reason for sale in the below) and as such are prepared to offer a potential buyer 2 options.

The first is an outright purchase of the business and the second is a 50% partnership.

In a 50% partnership option the Sellers would allow the potential partner to run the business and the Sellers would remain involved for a 2 -3 year period in an advisory/monitoring capacity. Thereafter the partner would have the option to purchase the remaining share of the business.

Established, growing and well run, this business opportunity presents a very rare opportunity not to be missed for any person or established business in the food manufacturing / distribution business.

Financial Information

Annual Turnover:

R 5 942 574 (Feb 2019) and is forecasted to grow to around R 7 765 756 (Feb 2022)

Adjusted Annual Net Profit (EBIDTA):

+-R 409 878 (2019) and is forecasted to grow to around R 527 912 (2022).

Adjusted Annual Net Margin (EBIDTA):

+-8% (20119)

Current asset value:

+-R200 000 (asset list is available – Included in the asking price)

Stock on hand:

+-R250 000 (Not included in the asking price but the Seller is negotiable on this)

Rent per month:

Currently R18 253 per month with a 7% annual increase

Vat registered:

Yes

MORE DETAILED FINANCIAL INFORMATION IS AVAILABLE BUT WILL ONLY BE PROVIDED TO SERIOUS QUALIFIED BUYERS AT A TABLE TOP MEETING AND ON COMPLETION OF A NON DISCLOSURE AGREEMENT

BuSiness Information

Business Type

Gourmet Food Manufacturing and Distribution Business

Asking Price

R 2 750 000 (Outright Purchase)

R1 950 000 (50% share)

PROVINCE

Eastern Cape

CITY

St Francis Bay

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Premises:

The premises are leased with the property being a total of 307msq. The building (production factory) consists of two floors of which the business occupies both. Landlord approval of the new owner will be required.

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Trading Hours:

Monday to Friday: 08h00 to 16h30;

Saturday: 08h00 to 13h00;

Sunday: Closed

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Buyer Profile:

This business is suitable for any entrepreneur, exiting business, family or husband and wife team that is looking to either expand their operational foot print or to enter the gourmet food manufacture and distribution business. Knowledge of the food industry is recommended.

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Reason for selling:

Retirement and Medical reasons

Disclaimer: All the information contained within this prospectus is supplied in good faith and is based on information supplied by the Seller; MN Business Brokers makes no representation as to its accuracy and in no way will be held liable for any eventualities arising from the use of the information provided.

Contact Us

call

Grant – 073 556 0065

email

grant@mnbrokers.co.za

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