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Exclusive UK Distribution of Mineral Spring Water

Businesses for Sale

Sale Memorandum

Exclusive UK Distribution of Mineral Spring Water


Ref.EH001

Location London, North London

Asking Price £2,500,000

Confidential offered for sale


Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA
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Asking price includes:

Well known and highly reputable brand
Domestic and consumer Clientele
Over 2,500 coolers in the market
Exclusive access to the source
50 – 60% year on year growth
Further potential for growth
Strong repeat client base
Loyal and dedicated staff
Well designed web-site
Training and handover
Excellent margins
Advertising
Goodwill

Business profile:

This business is a well-established water cooler company that has been supplying and distributing high quality mineral water and dispensers to commercial and domestic users in the UK since 1995. All of the water is bottled at source and originates from the company’s own deep well spring in South Wales which it acquired in 1968.
This business has capitalised on the staggering growth in the consumption of mineral water in recent years, developing a brand that is well known throughout the UK. Whatever the requirement – an office water cooler, desktop water dispenser, point of use dispenser or bottled water cooler, commercial or domestic, rent or buy, this business has a unit to match. All customers pay an annual maintenance payment for each cooler in place.
All of the water is bottled at one source and originates from an ancient 50 metre deep spring well in South Wales. Naturally filtered water has been drawn from this source for literally hundreds of years. Neutral in its ph of 7.5, it is high in minerals, low in sodium and rich in iron.
With over 2,500 water coolers currently in the market this business is one of the leading suppliers of bottled water coolers in the UK. With a wide range of Clients, its customer base includes the office blocks and factories of some of the biggest names in industry and the UK High Street as well as good representation in the Public sector with a large number of hospitals and schools.
Despite recent consolidation in the marketplace this business has thrived – largely on its brand development and the availability of its own source. As one of the few independents in this position it offers a far more flexible and cost effective solution than many of its multi-national rivals.
With its fleet of 13 wholly owned vehicles this company services both the commercial and domestic markets. Approximately 80% of its turnover is commercial though the domestic market representing the other 20% is becoming increasingly important as customers avoid the need to pay the high prices or carry mineral water home from the supermarket ever again.
Having built the business to its current considerable level a new owner will have the opportunity to build on the extensive foundations that have already been laid by increasing the business’s distribution further using the guaranteed source.

Product range:
Two types of dispensers are available: Bottle dispensers as the name implies, dispense water from a bottled source. There are further options available with regard to the temperature of the water dispensed – hot/chilled water or chilled/ambient water. The first of these two options provides the user with the ability to make hot drinks as well as dispensing chilled drinking water.
Tabletop dispensers or Mini Water Coolers provide an ideal alternative to floor-standing dispensers in an environment where floor space is at a premium. These dispensers offer ambient and chilled water only, are smaller in height and are designed to sit on a work surface or table instead of sitting directly on the floor.

Key strengths:
This is a very simple, straightforward business.
Unlike many companies operating in this market, who have to rely on the sources controlled by their competitors, this business is fully self-supporting and free from competitor attack. It controls all aspects of its own operation – from bottling, through to the manufacture of the coolers, cups and even the bottle caps.
As a small family business it is a very service oriented company, flexible in its dealings with its customers and swift to respond to Client needs.
It realised very early on in its development the power that brands and branding would have in the market place and has invested significantly in this area, able to compete on an equal footing with the likes of Nestle Powow who perhaps dominate the market. Its branding suggests an organisation far greater in stature than it really is.

Key opportunities:
Its base of approximately 2,500 water coolers in the marketplace already guarantees a given level of turnover and profitability. Margins are very healthy.
There is however, further growth available to the new owners of this business. Concentrating primarily on organisations within the M25, and with little or no sales and marketing effort aside brand building, this business has delivered 50 – 60% year on year growth for the last two years. Growth to date has largely been based on word of mouth recommendation. As the market for mineral water and consolidation amongst the players continues apace and as more and more organisations install water coolers within their premises there will be additional and frequent opportunities to increase the customer base even further.
Because of the simplicity of the business it also represents a viable franchise opportunity, offering the possibilities of a rapid spread of geographical coverage and significant increases in profitability and turnover.
Premises:
The business operates from leasehold premises comprising ample office accommodation, storage and a loading and unloading area. The rent is £37,000 per annum.
The premises are ideally located to access the local, regional and national transport network with easy access to Central London.
Customer service:
This business offers free delivery within London and the Home Counties. Deliveries are made within 24 – 48 hours of an order being placed by the business’s own liveried vehicles.

Advertising and Marketing:
This business has invested heavily in building a highly recognisable, reputable brand. Its success has largely been built via word of mouth recommendation.
It has features in the relevant editions of the Yellow Pages and has a well designed, easy to navigate web-site which includes a refer a friend scheme and the opportunity to receive further details of establishing a franchise.
It is envisaged that a dedicated telemarketing resource would have a significant impact on sales.
Financial profile:
The business is sold as a going concern. All negotiations will take place between the vendor and any interested parties under the auspices of Turner Butler.
The Asking Price is based on the industry norm of £1m per thousand coolers placed in the market.
Employees:
Apart from the Managing Director and owner who is responsible for the day to day running of the business there are four other permanent employees – three answering the phones and one in Accounts. Thirteen drivers all of whom are self employed deliver the product.
Owner Support and Training:

The owner is happy to assist with the hand over and training required to ensure a smooth transfer of the business.
Reason for Sale:

The owner wishes to retire.
Turner Butler Disclosure Statement:

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006

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