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Established Niche Market Furniture Manufacturer For Sale

Cape Town, Western Cape, South Africa
Asking Price:
R18,500,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
R8M - R15M
Cash Flow:
R3M - R8M

This business was founded decades ago as the brain child of a Swiss Gentleman who was born, bred and trained in as a Furniture Manufacturing Artisan. He relocated to South Africa at the early age of 27 where he opened up his own factory and manufactured bespoke furniture for the high end homes in Cape Town and Johannesburg. Since then the company had to grow and change with the times over half a century. Although the business still manufactures furniture for the high end home, it also manufactures for many hotels around South Africa as well as Internationally. This has evolved into the core business and generates the bulk of the income. After 55 years it has grown an exceedingly good reputation and do not advertise their services at all as they are a word of mouth company where their clients (international groups) trust them with to deliver exceptional quality products at excellent value. This create definite opportunities for growth and expansion of the company in terms of both size and profitability.

The business can be an attractive strategic acquisition to enter this niche market and supply internationally to exploit the export opportunities as a result of the favorable ZAR exchange rate. This business supplies top quality furniture that can be marketed successfully on the international market due to the exchange rate advantage. "We do manufacture the very best quality and we are often told by our international clientele, that our products are superior if compared to the UK and European Brands and offers excellent value. As it is, a substantial portion of our furniture gets exported via Decorators, Architects and Hotels.

Property Information

Real Estate:


Lease Terms:

Month to month. Current owner prefers this arrangement but the option remains to negotiate a term lease or relocate. Conditions in the industrial property market is ideal to negotiate competitive rental rates or purchase in a buyer market.

Leasehold Rent:

R960,000 per annum


The business is located in an industrial area very central to main highways, CT International Airport, suppliers, the harbour and just outside the CBD of Cape Town.

Premises Details:

2500 sq meters with parking, office and storage space.

Size in square feet:
Planning Consent:

The property is suitably zoned for this manufacturing concern.

Business Operation

Expansion Potential:

There is substantial growth opportunity in this business. This can be achieved through capacity building and expansion. Also adding in-house ranges and sell through online trading or collaboration with established players. The business could grow substantially but the current owner is not comfortable to expand or to take on more than what the business can produce with the current production facilities. "The company's good standing and reputation is why we are still successful and flourishing in these trying times. We turn a lot of work away as I know we cannot meet the deadlines needed due to the amount of work we have versus the capacity to produce it". After a long and successful career, the seller feels that the business requires renewed energy and ambition to capitalise on the opportunities. She is happy to share ideas and her opinions based on her experience with prospective buyers.

Competition / Market:

The owner is quite unsure about this. But does state that the number of competitors have declined over time. "I don't worry about competitors. We put our head down and get on with what we do best. Whatever is going on outside of our factory is not something we pay attention to. Guarding our integrity, credibility and trustworthiness is considerably more important than monitoring our competitors".

Reasons for selling:

Retirement. The owner does not have the energy to actively pursue the many opportunities available for this business that includes online trading, collaboration with furniture retailers, etc.

Trading hours:

Mo - Fri 7:30 - 16:30

Years established:

Other Information

Support & training:

To be provided. 4 weeks included. Telephone support ongoing. Thereafter with reasonable notice and at rates or retainer agreed upon. The seller is not leaving Cape Town and is committed to a seamless handover.

Furniture / Fixtures value:
R2,000,000 - included in the asking price
Inventory / Stock value:
R300,000 - included in the asking price
This business can be relocated.

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