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Established And Lucrative Textile Business For Sale

Gauteng, Gauteng, South Africa
Asking Price:
Sales Revenue:
Cash Flow:
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Well established retail textile business in the manufacturing and selling of Uniform/School Wear in Gauteng on offer. The business manufacture quality school wear, corporate and society wear as well as doing embroidery. This reputative business is an exceptional opportunity to enter this lucrative market or to expand existing operations.

The business has been operating for many years and is well established in its market. The current Owner grown this lucrative textile business into a large operation for the past
40 years which includes a satellite shop as well in a nearby town.

The reason for the owner wanting to sale is that she wants to retire after more than 40 years. The owner is involved on a day-to-day basis, overseeing manufacturing and retail operations, etc.

The business is situated in Gauteng allowing the business to source customers from a wide geographical area. The target market is primarily Black Schools allowing the business to service the needs of a big customer base and enjoy a steady sales growth with a sound cash flow over the years.

This reputable textile business is well established with a good recognizable brand and situated in a prime spot with a 343sqms spacious attractive shop who carved a nich with excellent service, well trained staff and a broad loyal customer base.

Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation) based on historical trading amounts to an average of R641,000 for the two financial years 2019 and 2020. This offers a ROI of 25.6%.

Included in the price of R2,500,000 plus VAT (if applicable) is Movable Assets valued at reasonable 2nd hand at R500,000 and Trading Stock @ cost of about R1,500,000.

All sales is on a cash base only which ensure a sound cash flow at all times.

The asset value includes six working stations with an Embroidery machine and five industrial sewing machines for the manufacturing of textile and School Wear products. The equipment is in very good condition..

Also available is the Commercial Property (premises 635sqm and building of 421sqm) in a separate entity that is well located with good visibility for R3,500,000 plus VAT(if applicable) over and above the selling price of the business for R2,500,000 or it can be rented at a reasonable rent. The EBPITD figure of R641,000 stated above is, after an allowance for rent.

The business has current 35 contracts with Black schools and can serve another 300 schools in their geographical focused school areas. A BBBEE owner will also be able to grow the business to enter in contracts with new schools with the manufacturing of school wear as well as clothing for government departments and SEO`s.

The business is being sold as turnkey and the Owner will ensure adequate training and assistance for three months after take-over .The staff is competent and fully trained in all aspects of the day-to-day operations of the business.

If you are passionate about the textile industry and want to be the new Owner of this
well-established lucrative textile business on offer – this might be the business opportunity for you.

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