Packaging Material & Janitorial Product Distribution – Established w/Property!

Los Angeles, CA


Asking 
$17,950,000
Gross Revenue 
$3,164,556
Potential Cash Flow 
$634,567

This well-established packaging material and janitorial product distribution company boasts a 45+ company client base, many with over 10 years of loyalty. The firm specializes in distributing boxes, packaging material, safety supplies and janitorial products, of which sales were not COVID impacted. Approximately 40% - 50% of the packaging products are drop-shipped to customers directly from the manufacturer. Janitorial and Safety products comprise an estimated 20% of sales. The vast majority of deliveries occur within a 20 mile radius of the business. The office warehouse property may be sold in conjunction with a business sale, but it will not be sold separately.

Inventory 
100000

Accounts Receivable Included in Asking
No

Facilities

This nearly 10,000 square foot facility can be leased for $10,000 per month plus $2,000 in monthly triple net (NNN) expenses on a new lease with term and options to be negotiated. Alternately, the seller owned property may be purchased separately for $3.2 million. All of the company’s furniture, fixtures, equipment and 35 years of goodwill will be included in the sale. An estimated $100,000 in inventory will be sold at cost.


Competition

This is an industry where historical reputation and crew performance speak volumes and determine a firm’s credibility. As this is a well-established incumbent enterprise with no key crew members, this company’s goodwill and lengthy client list and end-user customer base provide it a distinct advantage that an industry entrant or smaller firm would find difficult to compete with.


Growth & Expansion

New operators may grow the business in several ways, which could already be accomplished in the existing facility, without the addition of capacity. Since the firm has concentrated on clients within a 10 – 20 mile radius, new management may target prospects beyond the historic territory. Similarly, since 40% - 50% of packaging products are drop shipped, sales efforts could be concentrated on this category without material capacity or staffing impact. Finally, the company has a line a janitorial, cleaning and safety products that they offer, however these have not been a focus since they represent a minority of overall sales. Efforts may be bolstered in these categories.


Support & Training

Seller will train for 2 weeks at 25 hours per week or as negotiated


Reason for Selling

Retirement


Real Estate

Available for $3.2 ml

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