May 15, 2020 — "Project JanSan" distributes cleanroom, safety, janitorial and packaging supplies to predominantly larger and Fortune 500 companies and entities in the Midwest. It is a WBE/MBE company that engages in multi-year contracts with its customers. Based in the Midwest, the company has had a successful 30+ years in business, and the owners are now seeking retirement. The company is a proven performer with a strong record of excellence in servicing its customers and their respective distribution requirements. Ownership is seeking an outright sale, and would stay on board with the new ownership as needed to transition the business.
Company Growth: Management sees growth opportunities across all facets of the company: adding a (currently non-existing) Sales and Marketing team, better online presence, less competition regionally, and continued product-line diversification. Current customers with multiple locations in various cities have asked the company to branch out with them, which is a big opportunity for new ownership.
Market Channels: While the company has the ability to sell to small/medium sized organizations, they primarily focus on larger entities, such as Fortune 500 companies, municipalities, casinos, hospitals, etc. in the “inner Midwest”
Competitive Advantage: The company distinguishes itself from its competitors by distributing high-end, name-brand products to Fortune 500 companies, municipalities, casinos, hospitals and other “large scale” organizations. It’s become a nationally-recognized company for excellence in service, delivery and product quality.
Management: After leading Project JanSan for multiple decades, the owners believe the company is in good standing and is well-positioned for a transition in ownership. They are prepared to help through a transition period post-close.
Industry Growth: Many facilities across all sectors – healthcare, industrial, education, government, general office and commercial, food service – rely on the products and services that the “Jan-San” industry provides. Today, cleaning products are in high demand as more individuals and organizations express their concerns for proper hygiene and cleanliness in our environment and workplaces. The Jan-San industry has the second-highest growth potential of all distribution sectors, indicating the market is ripe for expansion. Demand for janitorial services has benefited from the growth of corporate profit, which increased at an annualized rate of 1.9% over the five years to 2019.
Financials: Cleanroom and Jan-San maintenance supplies amount to 85% of Revenues in any given year. The remaining is split between foodservice and packaging supplies. In recent years, the company achieved gross margins of 15%, which is well above the 5-10% industry average.
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