business for sale

Distributor of Frozen & Chilled Foods, Frozen & Chilled Vegetarian Foods & Premium Ice Cream

Businesses for Sale

Sale Memorandum

Distributor of Frozen & Chilled Foods, Frozen & Chilled Vegetarian Foods & Premium Ice Cream


Ref.AF072

Location London

Asking Price £ 1,450,000

Confidential offered for sale

Asking price includes:

Turnover circa £4,500,000 per annum
Gross profit in excess of 20%
Very large customer list
Strong second level management
Major supermarket groups amongst customer base
Serving throughout the M25 region
Excellent frozen and chilled storage
Fully computerised
Training & Handover
Goodwill
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA

Business profile:

This leading distributor of frozen and chilled foods, frozen & chilled vegetarian foods and premium ice cream was established by the current owner in 1979. Since that time it has grown to become a significant enterprise with a turnover circa £4.5m per annum with high gross and net profits. Circa twenty two staff are employed with a strong second level management team.

The company operates from first class frozen and chilled storage facilities with additional office space. There is ample room for the overnight storage of delivery vehicles as well as parking for cars during the day. The premises are close to major transport links.

The company focusses on serving mainly small independent food stores and enjoys a customer list of circa 1,400 businesses. In addition, the company serves the major supermarket chains with some specialist products: this represents only circa 4% of total sales, with therefore no risk to the business. The largest client generates circa 9% of total sales.

The bulk of the company’s business is frozen food, with circa 95% of total sales. A superb 600 pallet deep freeze facility serves as the main storage area.

Products from the most well known brands are sold including:

• Häagen Dazs®
• Wall’s
• Birds Eye
• McCain
• Heinz
• Mars
• Linda McCartney®

In addition specialist products are imported from France and USA.

Equipment

The company utilises a fleet of six 7.5 ton and one 35 cwt freezer vans for regular deliveries. In addition a number of cars are owned.

The main deep freeze facility is capable of storing 600 pallet loads and a secondary freezer is also utilised. A chiller is used for the storage of chilled food. Two fork lift trucks are owned.

A full range of office equipment is utilised including a real time computer system, especially tailored for use by the company.


Customer Service

The highest levels of service sit at the heart of the business’s customer engagement strategy
Key Strengths

This is a sound business with a strong customer base delivering consistent levels of performance. The business focusses on serving the independent food store owner with a wide range of products. Operating mainly within the M25 there are a large number of stores in areas of cultural diversity – vegetarian and other ethnic food is therefore much in demand.

The company is demonstrably ‘easy to do business with’ and is a regular supplier to its many customers, some of whom have been clients for many years.

As the move to a healthier lifestyle has gained momentum, the business has stayed abreast of this trend and is stocking a larger variety of organic products which are proving to be very popular amongst the customer base.

Very low levels of bad debt are enjoyed. Customers are a mix of payment by cash and account.

A new owner/ investment team with renewed vigour and hunger and a more aggressive approach to marketing will be able to drive significant new sales on the back of what is a very successful business.

Growth and Expansion

A move to give greater focus to chilled foods along with the current concentration on frozen products will undoubtedly produce increased sales and profits.
Premises

The business occupies first class leasehold premises of circa 14,500 square feet. The current lease expires in 2012 with a passing rent of £102,000 per annum. Business rates are circa £44,000 per annum.


Business Hours

Business hours are: 7.00am to 5.00pm
Advertising and Marketing

The company advertises in Yellow Pages™. A website is being developed and, in addition, regular product brochures are produced which are either posted or emailed to customers.

The business would benefit however, from the development and execution of a strategic marketing plan addressing all media activities.
Financial profile:
The business is being offered for sale on an ongoing concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business is financially stable with low levels of borrowing. The current turnover is circa £4,500,000 per annum with gross profits in excess of 20%.
Employees

Currently twenty two staff are employed all of whom report through a general manager to the current owner. The GM has been with the company for more than twenty years and can be relied upon to manage the business effectively in the owner’s absence.

The business is structured into three areas: namely transport/warehousing, accounts/admin and sales. In the latter area two representatives and four telesales staff are employed.

The staff represent a significant asset to the business as they are very customer focussed and deliver consistently high service levels.
Support and Training

A full period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership.
Reason for Sale

This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale not only as an organically expanding going concern but with further growth potential.
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

Next steps

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