This is a highly successful grocery and healthcare products distributor with primarily Tier 1 retail chain store clients. The Listing Price includes $5 Million for the Real Estate / Building Office & DC used by the business. The business was founded over 20 years ago. It is based in Eastern Canada and ships product / provides coverage to customers who are both Regional and National retailers. Expansion opportunities exist to support a number of these customers completely across Canada. Some Tier 1 suppliers have already appointed this firm as their national distributor. Many use existing company representatives to support in-store product management and customer relationships. Others simply take product into their own Distribution Centres for retail location allocation. The products are generally non-perishable.
The YE 2023 EBITDA on this business is approximately 2.5 Million and FY2024 will be roughly the same. FY2025 will show growth with additional new lines and skus distributed in to the expanding Customer Base. Coverage is over 2300 retail locations in Quebec which represent roughly 80% of total business. This Quebec percentage of overall business will significantly decrease as national contracts and customers are integrated.
The company Vendors are very supportive of the business and depend on it to get their items into the retail channel in a cost-effective, efficient and timely basis, every day. Suppliers count on this company to provide the support needed to ensure proper presentation and representation at the retail level while managing product availability and logistics for the distribution channel. A number of significant new vendors and customers have aligned with this firm in 2023.
The business is growing with consolidated EBITDA margins averaging 16% in the past 3 years.Included in the listing for the business, is a medium sized HQ / Distribution Centre
Net Working Capital to be included with the business will be negotiated with the Purchaser as substantial inventory is maintained for supply continuity.
The current owners will remain available in transition for up to 6 months after closing.
