Absolute unique food manufacturing and distribution in the Western Cape.

Absolute unique food manufacturing and distribution in the Western Cape.

Introduction:

• This business escalated from an idea and small beginnings in 2008, to a fully fledged food manufacturing and distribution business today, supplying some of the largest food convenience stores and they just concluded a supply agreement with major role players in the health sector.
• The branded products are wrapped in their own innovative packaging and have been described as- gourmet, elegant, fresh, shelf stable, refined, gastronomic etc.
• These products exceed competitors in the fresh convenience food market by far due to a combination of using only the best sourced ingredients, professional display on the shelves, unique handcrafted products catering for the customer requiring a fresh meal/snack on the run, etc.
• The new supply chain into the health sector only started now recently and there is a huge opportunity to expand this further especially with people after the covid-era now being more conscious of their food choices.
• This business includes the building which was recently valued at R3,2 million.
• The assets in this business are well managed and equipped to produce food products according to the strict regulations of the different food convenience groups that buy from this business.
• The staff component is very stable and most of them have been with the business from the start.

Financials:

• Full financials are available to an interested buyer proving the NP but in summary:
• The NP (EBITDA) amounts to R1,726 million per annum, not including future profits deriving from the new contracts which will only be reflected in the financials end February 2025.
• The buyer will have to buy the shares/assets/building in the company to continue effortlessly with the operations and customer base.
• There is an assessed loss of R5 million against the company that a buyer will take over, causing a tax benefit of +/- R1,4 million which is included in the selling price.
• There are certain debt agreements in the company that a buyer can opt to take over or the seller will settle such debt then the selling price is as indicated underneath.

Selling price:  

• R 8,7 million – including the business, building, assets that are fully paid plus the tax benefit indicated above.