Manufacturing of Frangrance Products for the Home Business For Sale

Business description

Founded in 1982 by its current owner, this company manufactures and distributes super-premium candle jars, fragrance diffusers and related frangrance products for use in the home. Products are distributed nationally to over 1,200 active accounts, including hi-end gift/home furnishing stores, exclusive hotel/resort shops, speciality stores and top retailers. The company does NOT sell to or compete with lower or mid-level stores and products. The company's strong growth and profitiablity (sales in 2007 were over $1.7M with profits exceeding $400K) are attributable to the company's exceptional, innovative fragrances (developed in conjunction with the world's largest fragrance provider and excusively owned by the company), distinctive and attractive "branded" packaging, superior lab-tested wax formulation, quality control and customer-friendly service. With the recent introduction of a hugely successful new product line (with another new product ready to be released shortly), managment expects sales to exceed $2M in 2008 and expects sales and profits to continue to grow strongly into the foreseeable future. After 26 years, however, even with these exciting developments unfolding, the owner is ready to retire and make room for new, energetic ownership to take the reigns and continue to build and grow the unique business he created.

Property information

Real Estate:

Lease

Lease terms:

The company occupies a 6K s/f leasehold that houses its offices, manufacturing and inventory sections. Base rent is currently $58,600.60 per year.

Other information

Expansion potential:

Home frangrance products are a multi-billion industry that experts expect will grow to over $7 billiion annually by 2010. By continuing to manufacture superior products, occassionally introducing new product lines (one is ready for introduction now) and by adding internet sales, this company can capture a growing portion of this expanding market.

Competition / Market:

There are only a few players in the "super premium" segment of the the home frangrance product industry. This company competes successfully against them by offering superior products, attractive packaging, better customer service and competitive pricing.

Support & training:

Seller will provide post-closing transition support and is open to discussing a longer-term relationship as well.

Reasons for selling:

Retirement.

Financing available:

Financing is available for qualified buyers.

Inventory / Stock value:

$300,000 (included in the asking price)