Manufacturer of Paper Bags For The Food Industry For Sale in Essex- Business 4 Sale .co.uk

Business Summary

ESSEX – INSIDE M25 RING
MANUFACTURE AND SUPPLY OF PAPER BAGS, SACKS AND CONSUMABLES ITEMS TO THE FOOD INDUSTRY

• Established over 50 years
• Turnover in excess of £3M per annum for the last 3 years
• EBITDA averaging £388,000 per annum over the last 3 years
• EBITDA 2012 £435,000 (Forecast)
• Freehold £4,500,000 or Leasehold £3,100,000 + SAV
• Reference: 1050 IG

BUSINESS SUMMARY

This successful and consistently profitable company has developed an excellent reputation manufacturing and supplying paper bags and sacks to the food and related industries. The customer base is well developed and includes around 40 major companies for whom regular repeat work is undertaken. Bags and sacks are offered in a variety of sizes and finishes and are produced with company branding to customers’ specifications. Trading from its freehold factory base in Ilford, Essex, customers are located throughout the UK with some international clients, mainly located in the Republic of Ireland. There is a substantial inventory of capital equipment included within the sale valued at some £1,700,000. This comprises principally of a flexographic printer and bagging and sack production machines of various descriptions. Beyond this, however, there is a very substantial listing of additional equipment, including lithographic plates, essential to the process.

The company has enjoyed a successful trading history with heritage dating back to the 1950s. Over the years, the business has generated significant and consistent profits. The customer base is well spread and the repeat rate is exceptionally high. In financial terms the balance sheet is strong, with a high EBITDA figure in recent years demonstrating the potential for excellent earnings for a new buyer. Considerable focus has been applied to maintaining the margin, with excellent performance in 2011 expected to continue in to 2012 and beyond. The company has both consolidated its place within this sizeable industry and developed a number of new customers of late.

The company would be an ideal purchase for a similarly sized or larger corporate, possibly within the industry, or an allied sector, and with an acquisitive growth strategy. Such a purchase would give access to mature, repeat customer base, a company with solid financials, and a freehold factory.

FOR FULL DETAILS PLEASE SIGN AND RETURN THE CONFIDENTIALITY AGREEMENT

Property Information

	Property:	Freehold

	Living Accommodation:	No

Growth Potential

The overall market for food sacks and bags is substantial in financial terms, and global in geographical terms. The potential for growth is significant. To date, the business has revolved around the personal requirements of the directors, but it is clear that investment in business development activities, and possibly additional sales staff, could generate very considerable volumes of business. There is additional production capacity within the business. It would be sensible for a new buyer to explore additional markets in terms of industry sector. Further sales could probably be developed through updating the existing website, possibly with a fully functioning purchase facility. The vast majority of work currently commissioned is through recommendation and previous work undertaken.

For the right buyer, the advantages could be considerable in terms of access to a mature customer base, where generation of additional work from these clients would be entirely feasible. In addition, it is probable that significant cost savings could also be generated through integration of the business with an existing company. Investment in additional machinery allowing the opportunity to produce larger bag for the pet food market is considered by the vendors a logical move in the current market place.

FOR FULL DETAILS PLEASE SIGN AND RETURN THE CONFIDENTIALITY AGREEMENT

Other Details

	Is this a home-based business?	No
	Can this business be relocated?	No
	Is this business part of a franchise?	No

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