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Description

OFF-MARKET ‘Q2

Co-Packing Opportunity Delivered on a Silver Platter

Huntington Beach, CA (Orange County)

Seller Financing Available

Asking Price: $249,000

Cash Flow: $183,016

Gross Revenue: $437,760

EBITDA: N/A

FF&E: Extensive

Inventory: Extensive

Established: 2012

Employees: TBD

Business Description

Successful, award-winning food scientist is selling the Dry and Powdered Foods Division of his successful frozen food processing and co-packing operations. Founded in 2012 with a proprietary frozen food treat the Company today holds numerous patents on four brands sold in more than 5,000 retail stores across the country.
The Dry and Powdered Foods Division was developed so the frozen treat’s foundational component– a blend of powdered products called a “stabilizer” could be kept inhouse. Then a friend wanted to make a cereal bar and a new side to the business grew. Despite seeing massive growth potential of the powder blending/packing line and a full snack bar manufacturing line (cereal bars, etc.) and a kitting and packing line, it’s outgrown management capabilities. However, since the Seller’s products still need the stabilizer blend, the Buyer will have a great client from day one.

Key investment considerations include:

– Ability to bypass the high-barrier of entry and lengthy start-up times.
– The Company’s Certifications avoid having to requalify and pass rigorous government oversight of new food production facilities.
– Powder-based products typically enjoy 65% gross margins.
– A Buyer can produce and sell their own brands while offering Private Label services to the next generation of food innovators.

Detailed Information

Facilities: The lease on two commercial units must be assumed by the Buyer (without a personal guarantee) before the end of June. The current rent of $7,000 for 6,400 square feet may be offset by $1,000 per month if the Buyer agrees to keep an industrial freezer at the location.

Competition: There are few in the area that have the certification and experience as this business. Those that do are not easy to work with, have larger minimum orders and are often more expensive. Being listed by the State as a certified Co-packer limits competition.

Growth & Expansion: This is a growth industry! To capitalize, a Buyer should make sure the Company is registered on every industry database, invested in Google Ad words, launch a social media program.
Then, become highly knowledgeable about what is going on in the industry, to stay in step with next greatest food trend and those who will need practical help.

Financing: With $120,000 down and strong credit, Seller will agree to a short-term note.

Support & Training: The Seller will not only provide initial training of up to four weeks, he will offer the Buyer licensing deals to develop new versions of some frozen products and will share

Reason for Selling: There are not enough hours in the day to fully develop this area of the business well. Funds from the sale of the Dry and Powdered Food Division will be used to accelerated growth plans for the Company’s frozen products.

Contact info

Pronova Partners

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