Business Overview:
Industry buyer could acquire $5.6 million in annual sales; over $2.5 million in gross profit; and additional shelf space with minimal additions to overhead. Annual Gross Profit Margins average 40%. A buyer with existing management, warehouse, office, accounting, and administrative functions will be able to enjoy this company’s healthy gross profit margins more fully through adding its sales to its existing structure.
The Sellers are open to selling the company in its entirety or splitting the two product lines to separate buyers.
Outstanding brand and reputation for quality—the company’s brand and trade names represent an attractive add-on acquisition candidate for an industry buyer. They enjoy leadership-level brand recognition and awareness as well as enduring brand loyalty and equity created over the past 70 years.
Relationships with retailers—the company has built close relationships with key retailers in the hobby & craft and art materials space, including many of the national chains. They currently have over 1000 customers with several thousand retail locations. They have also built loyal relationships with independent retailers through a business diversification strategy which adds higher gross margins to the mix of sales.
Straightforward integration—the buyer of this company will be able to assimilate the business while eliminating redundant expenses, and thereby grow profits substantially. Additional savings could be realized from a variety of measures including expanded sourcing.
Cross-over opportunities are possible for companies in like markets or with related products. There is great potential for a distributor to leverage its products with key accounts while expanding into this company’s traditional channels.
A huge growth opportunity exists to build more meaningful relationships with the large discount retailers of the world.
For more information regarding this listing please contact us by completing the "Contact the Seller" form to the left. We look forward to hearing from you.
Property Features and Assets:
The current facilities are available for sale or lease in a separate transaction but the business can be located anywhere. It is anticipated the art supply product line would require 25,000 sq ft and the craft/hobby line another 25,000 sq ft. Equipment can be made available for sale if a buyer so desires.
Market Competition and Expansion:
Company offers brand name differentiation in a fragmented market that exceeds $2B annually. Company maintains relationships with the largest art supply and craft/hobby retailers as well as a variety of independent retailers. Great opportunity for existing company to purchase economies of scale in distribution costs, or for company selling related products to expand into new markets.
Reason for Selling:
Multiple owners, some want to retire,
Additional Details:
- The property is owned.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
Resources: