Business Summary:
This contract manufacturing company has a full management staff in place, and their own brand is already established, solidifying themselves in the market! Their Des Moines, Iowa office handles all sales, design, and order management; their office in Vietnam is used solely for the production & manufacturing side of the business. The U.S. team of 32 is spread among several departments, including Design & Graphics, Marketing & Graphics, Web Development, Order Admin, Warehouse, Logistics, Accounting, HR, and Sales & Customer Service. The full-time team of 85 employees in Vietnam includes a Manager for each of their Cap, Bag, and Garment Departments, along with merchandisers, embroidery & graphic staff, Quality Control, pattern makers, design techs, accounting, warehouse, sourcing & procurement, and logistics personnel. Using a proprietary web platform to process and track all projects, this company’s client base consists primarily of corporate identity and specialty product distributors. With their own brand already well-established, they are able to act as an official outfitter/sponsor for clients. Their brand is their R&D tool for developing products for their customers; they develop and test at retail stores to assess demand and retail value, as corporate image demand follows retail demand.
They are currently licensed with 18 colleges/universities in the U.S., enabling them to manufacture their brand with the university’s logo. This portion of the business accounts for approximately 10% of their revenue, while the other 90% is essentially through large specialty product distributors. The company is also on the approved vendor list for one of the biggest medical supply firms in the U.S. that is the official supplier for 60% of all hospitals & clinics. This gives them incredible exposure to their customer base for work on out of contract products (uniforms and other wearables).
The design team in the US office works with each client to customize their order based on their specific requests. They create an image and load it into their proprietary website program, at which point the Vietnam team creates the sample and the US team makes sure it meets the customer’s requests. The order then moves on to the production phase in Vietnam; the logistics teams from both offices coordinate the shipping phase (by air or by sea) and makes sure the product goes to the correct port and is distributed to the customer in a timely manner. The average sale size is $3k-$4k, and the average length of time from an order being placed to being delivered is 55-65 days. The current owner offers management support and is willing to stay on board for 1-2 years to ensure a smooth transition.
Priced at $16,500,000, this company has the potential to grow ten-fold. A buyer already in logistics and/or manufacturing could expand what they are already doing. The brand is already established, so a buyer with marketing knowledge and abilities could expand that brand within their own customer base and truly take this business to the next level.
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