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Specialist Supplier Of Medical Equipment Cleaning Chemicals For Sale

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Specialist Supplier of Medical Equipment Cleaning Chemicals
Strong NHS relationships
Set up more than 33 years ago this very well established and reputable business provides a crucial and essential range of niche chemicals products to hospitals and surgical units in the healthcare sector, with direct relationships in the UK and some international customers provided to through trusted resellers.

The business specialises in the formulation, and supply of specialist high quality chemical formulations for the washing and disinfection of re-usable surgical instrumentation which includes flexible fibreoptic endoscopes and Transoesophageal Echocardiography probes (TOE), laboratory glassware and peripherals. The business has the facility to supply both large and small batches.

The business has been developed over time and is very well known in the sector by manufacturers, agents, resellers and surgical healthcare providers throughout the UK.

The business’ range of high quality chemicals are absolutely compatible for use in the latest washer disinfectors and AER equipment installed in the Sterile Services environment; and also has a range of chemical formulations that can be used in Ultrasonic cleaning systems as well as the manual & soak cleaning of heavily soiled surgical instrumentation.

The business has designed and developed many products that are the results of solving complex technical problems for its customers and retains significant strategic assets such as formulations manufacturing arrangements and distribution of the chemicals.

From first contact to completion the onus is geared towards complete customer satisfaction.

The business is committed to ensuring manufacture is to the required standards of excellence, (no cleaning capability means no operation at hospitals) as you would expect from a business supplying to customers with such health critical requirements.

The business was founded in 1981, originally to service the National Health Service in the UK and since when European legislation relating to washer/disinfectors, finds the business supplying its chemicals products to many countries, including – USA, Europe and the Middle East.

With so many years of experience in the sector, the business is able to offer its considerable expertise to customers and can provide essential input in overcoming problems with the quality cleaning of instrumentation going through the washing process. Examples include water quality analysis and the evaluation of soft metals/alloys used in the manufacture of instruments.

The business also has the protocols in place to complete residual chemical testing on surgical instruments on behalf of customers.

Customer Service:
This is a key area of strength for this business. The business is a quality driven organisation and has never failed to successfully meet a customer’s requirements.

The business has a sales and administration management team taking care of day to day customer relations; this together with speed of response and consistent quality of product ensures significant levels of repeat business. New business creation is achieved through resellers, client testimonials and word of mouth within the market also accounts for new business.

Key Strengths:
The business is financially strong with a very strong relationship with partners in formulation and operates from its Hertfordshire based office premises. It is growing year on year in terms of customers and financial performance and it consistently generates profits.

The business is a highly knowledgeable operation that can undertake a large variety of orders due to the impressive abilities of the people it has in place. Both large and small quantities can be produced and internal skills & the business’s reputation is very strong.

The business is established and profitable with a broad client base including some of the most famous hospitals in the UK and has regular customers and is not reliant on a small number of high turnover clients. The business retains a high level of historical clients.

The business has earned an outstanding reputation for its honesty, integrity, technical ability, service and reliability.

The business benefits from an ability to compete on price, technical advantage, proprietary formulations and extremely well embedded customer relationships that combine to ensure excellent, high added value profit margins.

Key Opportunities:
This is an outstanding opportunity to build on the existing products, services and customer base of this leading business. With a strong demand and impressive profitability, combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy levels will have every advantage of building on an excellent platform to take this business to its next level.

The business maintains a base of satisfied customers, who appreciate the business s superior products and skill sets, attention to detail, value for money and service.

The business has an excellent relationship with the NHS and has recently been awarded a new supply contract which will bear fruit in the 2019 financial year.

There are many excellent avenues for growth, especially within the current operations capacity and a drive to increase UK and European sales along with developing international, in-country reseller relationships and effort in gaining validations for other equipment washers than those that have kept the business busy over the years.

Financial Information:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

2019 Projected Turnover circa £247,000 per annum
Adjusted Net Profit circa £64,000 per annum
Gross Profit circa £141,000 per annum
Assets circa £31,000

Property information



Lease Terms:

We are advised rent, rates and water are circa £13,000 p.a. per annum.

Premises Details:

The business operates from a small office, ideally located in a busy Hertfordshire Town which is rented on a 3 month rolling arrangement.

The premise offer excellent value for money and are located in a fabulous semi-rural location, very close and in easy access of A roads and nearby M25.

Business Operation

Expansion Potential:

The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a diverse range of products and services in house with quick turnarounds. It has the infrastructure already in place to cater for significantly more work whether large or small scale.

It is an ideal add-on business to anyone currently selling into the central sterile supply and the endoscopy cleaning departments. There are strong synergies, not least incremental profits with little extra investment cost and immediate acceptance from customers.

It also has the ability to enter new markets should a new owner so wish as it has a sterling reputation in place. It is already seeing growth in terms of new enquiries as its proprietary designs and products consistently find new customers within the NHS in the UK and around the world in health markets. Current market penetration in the UK is London and the Eastern Counties with the rest of the NHS UK market as potential for growth

Perhaps the single greatest limiting factor to growth is that the current owner has managed this business on an almost part-time basis since 2002 and it is believed that a new owner with a pro-active approach could achieve a fourfold increase in turnover along with retained margin.

The business has gained IS9001 accreditation.

The business has relationships with UK and overseas agents, and with a little proactive effort this could be increased and it is believed would yield excellent results. There is considerable opportunity for re-branding and re-selling the business’ products.

Competition / Market:

The business could benefit from a more strategic internal medium/long term sales and marketing planning. It has a basic yet informative website but does very little in the way of proactive marketing. In saying that the website ranks highly on Google for explicit searches for the specialised products that the business manufactures.

Reasons for selling:

The owner is planning their exit strategy due to retirement.

Trading hours:

The business currently operates Monday to Friday and usual office hours of 9:00am to 6:00pm.

Years established:

Other Information

Support & training:

The current owners would be happy to provide full training and support at handover to ensure a seamless transistion of ownership. One/both may be prepared to stay on within the business for a further period of time should a new owner so require, subject to negotiation.

Contact Information

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  1. What will happen?

    We will pass a copy of your enquiry information, along with the name of the business you enquired on to finance specialists Rangewell. They will contact you in due course about financing your business purchase.

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