Sold
Manufacturer landscape and soil materials
This company is a premier manufacturer of various soil mediums, specialty barks, yard materials, and pet bedding supply. Their focus is to provide affordable high-quality landscape and nursery products to customers primarily located in California. They will serve clients elsewhere on a case by case basis.
Listed By: John Willingham
Background information
Reference:
55658
Year established:
1984
Reason selling:
Retirement
Finance
Sales:
$2,715,137
Profits:
$554,707
Profit type:
Discretionary Earnings
Operations
Employees:
Five, including two owners, one office/admin, one in the yard. Owners are open to an ongoing (limited)employment arrangement beyond the training period to facilitate a smooth transition.
Equipment:
The operation includes a turnkey compliment of equipment including loaders, forklift, trailers, truck scale, welding equipment, compressor and all necessary ancillary components for receiving, separating , mixing , blending and shipping of finished product, A complete list of equipment will be made available upon request and signed NDA.
Inventory:
The inventory varies greatly throughout the year based on client demand and requirements. The price includes approximately $400,000 of inventory from raw material, mixing and chemical products. The inventory will be adjusted at close of escrow based on inventory on hand.
Furniture fixtures and equipment:
In addition to the equipment referenced above, the acquisition also includes a fully furnished and operating office for management/administration.
Premises
Facility:
The facility includes an approximate 9,456 square foot metal shop building and approximately 750 square foot office building (residential construction), with a wide range of outdoor, divided material storage areas.
Square footage:
Approximately 10,260 square feet of structures on 10.5 acres
Rent and lease terms:
Rent for the entire facility including equipment is $2,500 per month, triple net. The General Partner also owns the real estate and would prefer to sell the property to the Buyer of the business ($300,000)
Location:
The location is an agriculturally zoned site with a Conditional Use Permit for the current operation. It is located just over 3.5 miles from Frwy 99/Interstate 5, for excellent North/South/West transportation, as well as immediate access to Hwy 223 with access to Hwy 58 (for East bound traffic)
Opportunities
Growth:
There are several areas for growth including a focused "sales" strategy (vs just referral business) in Central California and Central Coast. Additionally there is a great opportunity to expand the product line offered to existing customers. Another untapped market by the current ownership includes a more robust offering for clients that provide online resources. There is also a major development in the ;region that will provide a great deal of upside demand for their products for near and long term expansions.
Market:
The market is broad and diverse across several related industries, The business is designed to provide multiple ground scape materials from unique blends of barks to special ground cover over mulches and even playground fiber. Their customers cover a wide range of users from nurseries to landscape companies, schoola, specialty blend distributors and regional bark and soil amendments distribution.
Price and terms
Price:
$1,650,000
Down payment:
$1,650,000
Financing:
The project is currently in underwriting with the SBA and Seller will consider a "Seller Carryback" on a case by case basis subject to a financial review and substantial down payment.
Training:
The Seller will provide up to8 weeks of training at 20 hours per week, for both administration and yard operation.