B2B Specialized Water Processor and Distributor

Long Beach, CA
Los Angeles County


Asking Price: Annual Revenue:
$1,250,000 $2,165,000

Wholesale/Distribution: Non-Durable Goods


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RE: B2B Specialized Water Processor and Distributor Broker: Vasilis Georgiou

Quick Facts

Asking Price: $1,250,000
Annual Revenue: $2,165,000
Net Profit: Not Disclosed
Cash Flow: $275,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 1988
Employees: 9
BBN Listing #: 854231864
Broker Reference #: oceanwater

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Business Overview:

Founded in 1988, the Business has been providing its customers with premium filtered natural ocean saltwater for 33 years. With an annual volume exceeding 15 million gallons, the Company has established a loyal and long-term customer base by providing a reliable and high-quality product with dependable delivery service. The Company has been profitable for the past 21 years of operation including the economic downturn years of 2001, 2009-2010, and 2020. This steady and predictable profitability is in part due to its lean operations, diverse customer base, and absence of competition.

The Company has 70 diversified customers with a service area extending from Los Angeles to San Diego Counties and including San Bernardino and Ventura Counties, Las Vegas, and Phoenix. The customer base of the Business includes aquarium and hobby stores, seafood & tropical fish wholesalers and retailers, universities, and colleges. A major Pet Supply Chain has been a customer since 2003 as a retailer of the Business’ ocean water product which is packaged in 5-gallon ready-to-use containers and sold in stores throughout the country as a private label.

The Company produces and delivers to customers ocean-sourced saltwater that has been processed with a proprietary filtering and purification system that has been proven successful and resilient over the past 30+years. The Company’s ocean water processing system begins with fiber, sand, and charcoal sequential filtering. The filtered water is then ozonated, subjected to UV light, and protein skimmed.

This purified natural saltwater is superior to “batch-mixed” salt added to tap water. that are attempting to duplicate real seawater. Sea life has better health and longevity with the Company’s purified natural water environment as compared to tap water with added salt because ocean water contains key micro-nutrients and minerals in a naturally occurring salt level while avoiding the tap water chemicals and salt mixing errors often found when “synthetic” batch prepared saltwater is used.

The new owner can realize substantial growth potential, stemming from the fact that this Company is well positioned to expand in a national footprint.

Since its inception the Company has been located in Long Beach. The Company leases a 17,600 square foot area which includes two structures totaling 4,400 square feet. These premises can accommodate all tractors and trailers, water treatment systems, and storage tanks.

The Company has a separate lease for an ocean water intake & line that runs the length of the parcel. The intake line is anchored approximately 30 feet from the end from the parcel and draws seawater approximately 25 feet below the surface.

The Company has competent and long tenured staff managed by a General Manager.

Differentiation
• Started in 1988 and has experienced consistent growth and profitability ever since.

• Company has an established management structure that can operate independently of the Company owners.

• Company operations is managed by an experienced General Manager that has good rapport and command with the staff.

• The Company enjoys a high degree of visibility and customer awareness in its target market due to its established reputation.

• The Company’s staff understands the importance of following chain of command. Staff leaders are the eyes and ears of management on the job site and have been given the training and autonomy to execute their responsibilities.

• The Company has developed a specialty niche market segment with proprietary technology and does not have any meaningful competition. This situation has given the Company some meaningful pricing power. For example, during periods of excessive fuel price increases, the Company has been able to obtain fuel surcharges to offset increased fuel cost,

• The Company has an impressive list of highly diversified customers.

The Business is part of a niche market that it helped to create. Starting in the 1980s, exotic sea life became more common for aquarium hobbyists and public displays such as museums and parks. At this same time, demand for fresh and more sophisticated and varied seafood alternatives began to increase significantly, so wholesalers and retailers needed improved inventory management and logistics. These users, who needed large volumes of saltwater, found that mixing tap water with salt often produced uneven salt levels which could cause negative environments for seafood and sea life. In addition, natural nutrient levels were difficult to replicate in synthetic saltwater production while monitoring and managing trace chemicals and additives in tap water. The Company’s natural seawater provides a reliable product that performs and addresses all of the concerns in this growing market segment which included a variety of users.

The Company is not aware of or encountered any other processed ocean water provider in Southern California. The Company has not participated in an RFP or competitive bid process that would indicate other comparable providers.

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Property Features and Assets:

Rent: $18,953/ month, 17,600 Square Feet.

Market Competition and Expansion:

Excellent growth potential.

Reason for Selling:

Personal

Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

Relevant Links:

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