$2,000,000
Gross Revenue
$8,630,868
Potential Cash Flow
$714,525
The apparel manufacturing company is the West Coast leader in its product category. They private label for some of the world’s most well respected brands as well provide smaller enterprises incubator like support services from concept to design, pattern making, execution and marketing. Their prowess centers around their manufacturing equipment and capacity as well as their development services, comprehensive cut and sew department and the tiered pricing options they are able to offer from their U.S. factory or their 12,000 square foot facility in Mexico. For higher volume or even more price sensitive needs, they have a Chinese based joint-venture relationship. Their breadth of production abilities makes them a one-stop shop. They also have the ability to in-source dying.
The offering includes the company’s bourgeoning premium clothing label. This brand grew by 100% in 2014, was up 40% in 2016 and 20% in 2017 in what many consider to be the most appealing clothing segment. The high-end line is off to a record start in 2018 with over $200,000 in estimated Q1 seller’s discretionary cash flow. It is tracking to do over $4.0 ml in 2018 revenues.
$1,000,000 at cost at close
Accounts Receivable Included in Asking
No
Facilities
This sale includes the private label manufacturing company, its licensed production facility in Mexico, its premium brand and its over 33,000 square foot factory in Los Angeles. Alternately, one or more of the premise’s 3 parcels may be purchased or leased-back by the buyer. The manufacturing plant includes an extensive build-out as well as an estimated $1.5 ml of specialty manufacturing equipment.
Competition
The segment of apparel manufacturing is dominated by two major international firms however there are few U.S. based competitors. In fact, this plant is the largest U.S. owned private label facility of its type in the country and likely accounts for 35% of West Coast private label production. Competition exists for the premium brand from major international labels, but this brand is renowned world-wide for being the best in terms of quality and style in its product category.
Growth & Expansion
They are operating at 35%-40% of U.S. capacity; 25%-33% in Mexico
May futher vertically integrate by dying apparal in-house
The apparal brand anticipates 300% - 400% growth in 2018 online sales
The brand is spoised to expand into international market
Support & Training
As negotiated
Reason for Selling
Personal
Real Estate
Available for $8.579,000
