Packaging Material&Janitorial Product Distributor

Los Angeles, CA
Los Angeles County


Asking Price: Annual Revenue:
$1,795,000 $3,164,556

Wholesale/Distribution: Durable Goods


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RE: Packaging Material&Janitorial Product Distributor Broker: Ryan Clark

Quick Facts

Asking Price: $1,795,000
Annual Revenue: $3,164,556
Net Profit: $634,567
Cash Flow: $634,567
Total Debt: Not Disclosed
FF&E: $10,000
Real Estate: Not Disclosed
Year Established: 1983
Employees: 2
BBN Listing #: 16684929
Broker Reference #: PacBox

Email or Print Listing

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Business Overview:

This well-established packaging material and janitorial product distribution company boasts a 45+ company client base, many with over 10 years of loyalty. The firm specializes in distributing boxes, packaging material, safety supplies and janitorial products, of which sales were not COVID impacted. Approximately 40% - 50% of the packaging products are drop-shipped to customers directly from the manufacturer. Janitorial and Safety products comprise an estimated 20% of sales. The vast majority of deliveries occur within a 20 mile radius of the business. The office warehouse property may be sold in conjunction with a business sale, but it will not be sold separately.

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Property Features and Assets:

This nearly 10,000 square foot facility can be leased for $10,000 per month plus $2,000 in monthly triple net (NNN) expenses on a new lease with term and options to be negotiated. Alternately, the seller owned property may be purchased separately for $3.2 million. All of the company’s furniture, fixtures, equipment and 35 years of goodwill will be included in the sale. An estimated $100,000 in inventory will be sold at cost.

Market Competition and Expansion:

This is an industry where historical reputation and crew performance speak volumes and determine a firm’s credibility. As this is a well-established incumbent enterprise with no key crew members, this company’s goodwill and lengthy client list and end-user customer base provide it a distinct advantage that an industry entrant or smaller firm would find difficult to compete with. New operators may grow the business in several ways, which could already be accomplished in the existing facility, without the addition of capacity. Since the firm has concentrated on clients within a 10 – 20 mile radius, new management may target prospects beyond the historic territory. Similarly, since 40% - 50% of packaging products are drop shipped, sales efforts could be concentrated on this category without material capacity or staffing impact. Finally, the company has a line a janitorial, cleaning and safety products that they offer, however these have not been a focus since they represent a minority of overall sales. Efforts may be bolstered in these categories.

Reason for Selling:

Retirement.

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.

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