Mar 19, 2020 — This is a rare opportunity to acquire a leading 50-year-old distribution business in a transaction where 100% of goodwill is backed by inventory. The business owns 13,500 sq. ft. of prime real estate located in a sought after industrial area of Toronto also available for sale to the business buyer.
This premier Canadian industrial equipment distribution business has in-house manufacturing capabilities and produces 20% of products on-site, the remaining 80% being outsourced. The business has a broad product line which serves light and heavy-duty industrial markets across various industry sectors including automotive, industrial (mining, marine), agriculture and trucking. An extensive network of dealers across Canada has enabled the business to push product sales and increase market penetration across the country. Additionally, the business has excellent long-term relationships with multiple national and international suppliers. Over the last year, the business has outsourced more product to cut costs and boost margins.
The business’ state-of-the-art operating facility is available for sale at market rate. The facility is located minutes away from a major highway, allowing quick dispatch and delivery. The business leverages its large warehouse space by maintaining enough inventory in stock to achieve a fill rate of 96%. A structured operating model has allowed the business to maintain consistent profit margins over the years.
This is an excellent opportunity for a related industrial products distribution business to integrate horizontally and add distribution capabilities to its business. This turn-key business offers opportunities to enhance market penetration and achieve cost synergies.
Asking Price: $799,000
Revenue (3 Yr. Avg.): $2,336,000
Normalized EBITDA (3 Yr. Avg.): $143,500
Normalized SDE (3 Yr. Avg.): $223,500
Inventory (included): $800,000