Supplier Of Speciality And Commodity Chemicals To Industry For Sale

Business description

This is an excellent opportunity to aquire a well run profitable business. The business wholesales and supplies speciality and commodity chemicals to the food and other industries. The chemicals are primarily used as environmentally friendly effluent treatments.

The company buys in bulk and re-packages and distributes the chemicals for re-sale, including some chemical blending. There are over 20 different chemical types and the flexibility of the operation allows them to supply in large 27 tonne bulk tankers or in 1,000 ltr IBCs or small 25 litre drums. Delivery is within 2/3 days of receipt of order and the company are proud of their reputation of being a reliable and competitive supplier.

The business runs from leasehold premises in West Yorkshire with a small staff, including the owner. Distribution is out-sourced to a local haulage companies and the business runs with low overheads.

This would be an ideal bolt on for an existing chemical supplier to merge into their operation. There are excellent opportunities for new owners simply by expanding their customer database and widening their range of speciality chemicals.

Key Strengths:

• Well established – 2001
• Database of Blue Chip customers (40/50)
• Technical know how
• Five storage tanks and over 200 bulk container IBCs
• Profitable business with low overheads
• Easy to run
• Specialist market place
• Leasehold premises

Financial Information:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover circa £1.7 Million per annum with operating profits exceeding £200,000 per annum.

Property information

Property:

Leasehold

Lease terms:

There is a rolling 12 month lease at circa £11,000 per annum, plus a service charge of circa £10,000 per annum, which includes rates, water, maintenance and other services.

Location:

The business runs from a leasehold industrial unit of circa 3,000 square feet in West Yorkshire. The unit is fully secure with roller shutter doors and has cameras operating around the outside perimeter.

There is a rolling 12 month lease at circa £11,000 per annum, plus a service charge of circa £10,000 per annum, which includes rates, water, maintenance and other services.

Business Operation

Expansion potential:

The business has grown dramatically over the past three years, under the guidance of the present owner. The company are expecting another year of steady growth and the owner is happy with this under the current infrastructure. He believes that he has taken the business as far as the size of company will allow and that new owners would be able to build upon the sound foundations that he has laid down.

In the past the business had a reputation for being a small batch supplier of chemicals, but a successful shift in strategy has allowed them to compete with national suppliers to secure group contracts. The business are now able to tender for larger contracts, encouraging a dramatic upturn in turnover over the last three years from £800,000 in 2007/08 to the current turnover of circa £1.7 Million and increasing.

New owners with greater resources would be able to tender for even larger contracts and could increase the range of speciality chemicals. They should also be able to widen the geographical area for the core percentage of business, which at present is generally within a 100 mile radius of their headquarters.

Reasons for selling:

The owner believes that he has taken the business as far as the size of company will allow and there is the option to retain the owner for a period of time to help with the running and the takeover of the business.

Employees:

The owner takes care of the daily running of the business, while his wife looks after the administration. Two other general workers manage all of the re-packaging and warehouse operations.

Years established:

2001

Other information

Support & training:

The vendor would be happy to help with a smooth transfer of the business in any way possible including the handover of the chemical recipes and know how.