Details - Information last confirmed on April 23, 2021
Packaging Supply Co. With Prime Location Inventory Included Lease Expected to Save $1.3M+ Over 5 Year Term SBA Loan Approved.
Los Angeles, California
The Company is a trusted top-quality custom manufacturer and distributor of packaging supplies such as stretch film, packaging tapes, stocks and custom corrugated, plastic packaging, and janitorial supplies. The business has its own brand name. The company also converts and distributes and customizes in house some well-known pre-stretch hand films with superior quality for their customers.
The headquarter office and warehouse are conveniently located right next to major freeway, and close enough to the major port.
The business has nearly two decades of established reputation. Its core competences are speed and price. The business is able to supply to local customers via same day or next day delivery at competitive prices. Due to the strong partnerships with leading manufacturers, the business is also nimble with lower overhead than big box chain competitors. The business has implemented CRM system to scale up and achieve efficiency.
The business primarily runs a B2B business model. This helps grow and scale without worrying about very small retail orders. In the meantime, customer concentration is very low: the total of top 10 customer volume accounts for only around 15% total revenue.
Key products offered include but are not limited to: corrugated boxes, tapes, all size stretch films with various gauges, bubble wrap & foam rolls, customized v-board, polybags, labels, strapping, peanuts, mailer, janitorial supplies, copy paper and so on.
All FF&E is included in the purchase price. $1,250,000 worth of inventory is included in the purchase price; price will be adjusted up or down at closing per the inventory value at cost on the closing day.
Financials are the average of 2018, 2019 and 2020 performance.
A comprehensive 40+ page Confidential Information Memorandum crafted by KW Commercial is available upon signing NDA and presenting pre-qualified financials.
Asking Price: $5,750,000
Cash Flow: $985,062
Gross Revenue: $7,835,301
Inventory: $1,250,000 (included in asking price).
FF&E: $437,875 (included in asking price).
Real estate: Leased
Rent: Effective net rent is about $2,084/month for the 31,000 SF occupied.
Lease expiration: 10/01/2026
Seller Financing: Yes
Facilities: The business occupies about 31,000 SF out of the total space of approximately 71,000 SF industrial building. Nice facility with office and warehouse together on one site. The large space could also accommodate future growth. In the past few years, the business has been enjoying some rent savings already. In the new lease starting on 10/01/2021, the lease itself is expected to produce around $272,592 lease savings per year, which is $1.3M+ over the 5 year term. Total rent will be about $46,800/month for entire building and lot; sublease 30,000 SF warehouse for $24,000/month; sublease yard for $12,000/month; sublease 10,000 SF warehouse for $8,800/month. Effective net rent will be about $2,084/month for the 31,000 SF occupied by the business. Lease savings are included in asking price; price can be discussed depending on Buyer’s preference to include the entire lease or not.
Reason for Selling: Reasonable personal reason.
Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.