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Description

Frozen Food Manufacturer for Sale, w/Nearly Every Big Box Contracted!
Los Angeles, CA – (Los Angeles County)
Seller Financing Available!
Zip Code: 90040

  • Asking Price: $20,000,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: $10,600,000
  • Inventory: N/A
  • Lease Rate: N/A /SF
  • Established: 1965

 

Business Description

The company produces delicious, all natural and profitable ethnic-based frozen food brands, co-packs and offers private label varieties for major grocery & big box stores.

The company is strategically positioned for growth thanks to recent equipment upgrades and its unsurpassed ability to bring new products to market from concept to packaged frozen food item and turn a concept into a finished product for the shelves in less than a month.

They have their own labels/branding/following, but it’s a business first and ego is second, so they also contract manufacturer for a who’s who of some of the heavy hitters in retail & grocery.

Their claim to fame is producing these tasty food items with a slimmed down recognizable ingredient list (usually on one hand) which meets consumers’ prolific demand for healthy yet easy to prepare food.

The Company follows strict GFSI standards and is Safe Quality Food (SQF) Level 3 & HACCP certified.

With fresh ingredients, impeccable safety records, and 35% profit margins, the Sellers are seeking an exit to take this facility and the pending contracts and turn this into a 9 figure top line powerhouse.

NDA is required for 20 page

Confidential Information Memorandum crafted by ProNova Partners.

Detailed Information

  • Inventory: Included in asking price
  • Real Estate: Leased
  • Employees: 25
  • Furniture, Fixtures, & Equipment (FF&E): Included in asking price
  • Facilities: The 50,000 sq. ft. state of the art facility is SQF Level 3 Certified. The building is on a long-term lease with an option to purchase.
  • Competition: Despite the frozen food market is quite diverse and growing, Company produces a variety of all-natural, underrepresented ethnic-based foods.
  • Growth & Expansion: Industry insiders say manufacturers are gearing up for long-range forecasts for continued growth. This Company is unmatched at quickly meeting the needs of grocers that desire to sell to customers wanting healthy, trendy, less processed foods.
  • Financing: TBA – Deal & Buyer Dependent.

Industry Trends and Market

The US food manufacturing industry consists of about 27,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenues of about $775 billion.
This Frozen Food Manufacturer is already ahead of the latest consumer trend of making better and healthy food choices thanks to its commitment to using all natural products.

The emerging millennial market has manufacturers rushing to develop vegetarian and vegan options without preservatives and chemical processing while baby boomers to are looking for easy and nutritious choices.

In response, many retailers are dropping less healthy products that are not selling and are actively looking for manufacturers that are not too big and not too small but can quickly produce on-point items customizable to existing or modified shelving specifications.

Global Industry Reach

Worldwide, retail sales of processed foods total about $2.5 trillion.

China, the US, and Brazil are the largest packaged food markets, according to Euromonitor International.

Global industry revenue is increasing, but economic slowdowns in key emerging markets have curbed growth in recent years. As consumers increasingly search for healthier food items, some frozen foods have not been dropped from grocery lists.

While larger manufacturers have been slow to answer the call for healthier ingredients and are suffering in sales, this Frozen Food Manufacturer for Sale is growing.

Source: http://www.masource.org/

Stabilizing and Growing Profits in an unstable Commodity’s Market

Food Prices Stabilizing – US wholesale food prices are leveling off after increasing steadily for several years.

The US producer price index for food products was about 15% higher in 2015 compared to 2010, but about 5% lower than in 2014. Due to increasing production, the USDA predicts that wholesale prices of foods such as beef, pork, and poultry will decline over the next two years.

Industry insiders also claim that the cost of ingredients can be volatile; often rising or falling 10% or more from year to year, many associated with extreme weather events. Thanks to drought conditions in California, fruit, and vegetable prices are expected to rise in the short term.

Opportunity:

Food Manufacturers Optimistic About 2018! – The share of food manufacturing professionals who are upbeat about the new year has reached the highest level in five years, according to Food Processing magazine’s 17th annual Manufacturing Outlook Survey.

About 80% of food manufacturing professionals say they are either “very optimistic” or “somewhat optimistic” about their company’s prospects in 2018.

Makers of seafood, poultry, and meat products are the most confident about the upcoming year, followed by confections, and sauces and condiments. Overall, about 85% of survey respondents expect production to increase in 2018, and of those, more than half believe production increases will reach double digits. On average, respondents say their company will increase capital expenditures by more than 5% in 2018.

Contact info

Rick Carlson
Rick Carlson

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