Seed and Grain Supply Company in SE Missouri

Cape Girardeau, MO
Cape Girardeau County

Kansas City


Asking Price: Annual Revenue:
$3,700,000 $4,900,000

Wholesale/Distribution: Non-Durable Goods


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RE: Seed and Grain Supply Company in SE Missouri Broker: Rex Reinhardt
Owner Financing is Available!
Open to some

Quick Facts

Asking Price: $3,700,000
Annual Revenue: $4,900,000
Net Profit: $1,100,000
Cash Flow: $1,500,000
Total Debt: Not Disclosed
FF&E: $3,500,000
Real Estate: Not Disclosed
Year Established: Not Disclosed
Employees: Not Disclosed
BBN Listing #: 545941672
Broker Reference #: Not Disclosed

Email or Print Listing

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Business Overview:

Asking price is $3.7m plus inventory. Inventory fluctuates between $500k up to $2m. Great candidate for favorable USDA financing, or SBA financing.

Project Seed, a multi service provider of Agronomy Services and Grain Storage (NAICS 493130) and ancillary supplier of grain, fertilizers, seed, insecticides and other services. The company is an exclusive dealer for Pioneer Seed. Served markets include SE Missouri, Western Illinois and Northeast Arkansas. Fertilizer recommendations and chemical prescriptions are a key value add. The company is one of the few in the general region that does cleaning. The company is located in Missouri, and is adjacent to town with a 100,000 metro area population. The company was founded almost 75 years ago.

Business Highlights:

Company Growth: Management sees growth opportunities with logical expansion and integration of current activities. Good media presence already exists. This is highly scalable to add other operations in adjacent regions to increase scale and buying power, expansion opportunities exist in Western Illinois and Northern Arkansas. Expanding Agronomy services such as soil sampling, precision ag, etc. also would be interesting.

Market Channels: The company predominantly works with the farmer market.

Competitive Advantage: Steady predictability over seven decades is a differentiating factor. OSHA compliant safety is a positive, if not essential factor. Project Seed is well placed to engage more partners with their fertilizer business due to its existing customer relationships with some modest Cap-ex. Also, being privately-owned as opposed to a part of a “Co-op” is highly advantageous in flexibility and unanimity decision-making.

Management: Key men are 68 and 58 and have been involved with the company since 2009, providing a layer of management below the ownership. A new salesperson is interesting to add on right now.

Industry Growth: Off-farm Grain storage in the US has grown each of the past 20 years. According to Graphical Research, the North American Fertilizers market is expected to reach $27 billion by 2027, so the market is continuing to grow. According to Grandview Research, the total global grain mill products market size was valued at $623 billion in 2018, and is expected to grow
at a CAGR of 3.6% from 2019 to 2025. Furthermore, CISION pegs storage CAGR at 4% CAGR from 2021-2025

Financials: Little debt, quality brick and mortar facilities, modest asset base and sound candidate for financing. Consistent Revenue and Cash Flow over the last five years, with 2020 and 2021 seeing multi-year highs with rising crop prices, especially corn and soybeans. The company grew Revenue from $3.4m in 2019 to $4.1m in 2020, during COVID. The company looks to have back-to-back, double digit Revenue growth for 2020 and 2021. The company finished 2021 at $4.3m Revenue, $1.1m adj. EBITDA for 2022. And, looks to “chase” $5m Revenue in 2022.

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Reason for Selling:

Retirement

Additional Details:

  • The property is owned.
  • The owner is not 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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