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Packaging Company In East Rand For Sale

East Rand, Gauteng, South Africa
Asking Price:
R14,000,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
R45,000,000
Cash Flow:
R3,600,000

History:
The business was established in 1999 by the current owner.

It acquired a packaging company in 2011 which was complementary to the activities of the company at the time and offered great synergies.

The Seller acquired the premises from which the company operate in 2013.

Description:

The business essentially offers a one stop packaging solution to its customers. Benefits offered to clients include stock management and warehousing, sourcing of competitive packaging solutions, branding and printing and all products supplied from one source on account as opposed to many different suppliers.

The company is purely trading and has no additional in-house added value activities such as manufacturing, packing or printing.

Customers are diverse in nature but there is a large concentration in the Agriculture to retail, Agriculture to export and Manufacturing to retail sectors.

Products include printed and unprinted products made from carton, paper, polystyrene and PET plastic and various others.

Many products are labelled / printed but is sourced from the manufacturer meeting all customer branding requirements.

The business has approximately 500 listed clients of which 150 are regulars. A high concentration of these are in Gauteng but there are also many large customers in Limpopo.

Products are sourced from + 30 suppliers country-wide.

Marketing:
Word of mouth referrals contribute a large percentage of new customers. The business has a website and also employ a Sales Manager and two Internal Sales representatives to deal with all customer enquiries.

There is no advertising budget.

Growth has been a factor of increased sales and expanded product lines to existing customers.

Property Information

Real Estate:

Lease

Lease Terms:

Negotiable.

Leasehold Rent:

60,000 Per Month per annum

Location:

Modern and comfortable building with easy access to highway in Near East Rand.

Premises Details:

The premise is owned by the Seller.

The purchaser of the business has a choice of acquiring the building, rent the space from the seller or alternatively to move the business to an alternative property.

It offers approximately 1000 m2 in Warehouse space and an additional 200m2 office space.

Size in square feet:
1200m2

Business Operation

Expansion Potential:

The facility, infrastructure and competitive pricing offer the capacity to expand and even double in value.

The Packaging Sector is a Multi-Billion Rand Industry and the company can decide to grow in their current niche segment or diversify.

Competition / Market:

There are a number of packaging companies offering similar services, but every competitor has his own segment / customers resulting in the head-to-head competition being low. This is mainly as a result of stock-holding of branded and printed materials on behalf of customers as well as the design and print stereos management.

Large customers with large requirements may ultimately source direct from the manufacturer in order to save on costs.

Reasons for selling:

The Seller wishes to emigrate.

Trading hours:

Monday to Thursday: 08:00 – 16:30
Friday: 08:00 – 15:00

Employees:
The business employs: - A sales Manager - 2 x Internal Sales Representatives - 1 x debtors / creditors Clerk - 4 x Drivers - 2 x Driver assistants - 1 x Cleaner - 1 x Warehouse - The business would also in addition employ some casual labour in the peak season. Total Labour related cost to company is approximately R150,000 per month.
Years established:
20 Years

Other Information

Furniture / Fixtures value:
R1,000,000 - included in the asking price
Inventory / Stock value:
R1,500,000 - included in the asking price
Relocatable:
This business can be relocated.

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