Turn-Key Facility – Softgels, Gummies, and Tinctures
Accommodates High and Very Low Volumes – Formulation Help
Our client is a four-year-old, GMP-certified, and FDA-registered manufacturing company. It was formed to support the emerging supplement and nutrition industry. The initial focus had been on Hemp/CBD industry, but it can also serve the broader nutraceutical industry.
The Company’s capabilities include softgel encapsulation, tincture manufacturing, and gummy manufacturing. The Company can work with large and small orders alike, with a low minimum ordering quantity (LMQ) requirement, as little as 30-50k units. The owners have extensive knowledge of Hemp/CBD/Nutraceutical space. The report of third-party quality assessment is available on the Company’s website for its customers. The Company helps its clients navigate complex local, state, and federal manufacturing guidelines.
The Company tests the manufactured products for purity and potency through third-party testing. The Company can service and ship the products all over the world.
This FDA-registered GMP facility is ideal for:
- Buyers seeking a turn-key and flexible manufacturing space for CBD / Nutraceutical products.
- Established Nutraceutical company wanting to enter CBD manufacturing or a new geographical space.
- Contract Manufacturing Companies (CMOs) looking for a facility with the flexibility to manufacture both small and large lots and with the capability to formulate nutraceutical products, including CBD/ Hemp.
Financial Highlights
The Company started manufacturing Tincture products in November 2019, and around that time ordered a softgel manufacturing machine from China, to make gummies and softgel products. This machine was delivered and installed in the first quarter of 2020. At this very time, China was seeing its Covid outbreak which had not yet reached a noticeable scale in the USA. Soon after the machine was installed, Covid hit the USA hard. Many businesses that included the Company’s potential customers were slowing down or temporarily closing their operations.
Despite these early difficulties, the Company not only survived but managed to get modest revenue and showed at least modest profits from 2020 onwards, as seen in the figures below. In 2023, it is beginning to procure larger orders and expects its revenue to top $1M this year.
| (All figures are in US$) | FY 2023 Jan-May |
FY 2022 | FY 2021 | FY 2020 | FY 2019 (Nov start) |
| Gross Revenue | 369,010 | 794,882 | 979,995 | 633,241 | 173,551 |
| Gross Profit | 212,002 | 340,440 | 541,644 | 243,547 | -$68,660 |
| % of Total Revenue | 57% | 43% | 55% | 38% | |
| Adjusted EBITDA | 86,395 | 44,439 | 91,652 | 28,128 | -226,109 |
Reason For Sale
The management feels it has taken the Company as far as it could with its resources. But Company has a much more significant potential to have revenues of tens of millions of dollars in the hands of a larger company.
Asking Price
The asking price of this turn-key Company is $1.5M, which includes about $1M worth of assets and comes debt-free. Someone starting from Scratch will easily spend up to two years finding a facility, refurbishing it for GMP manufacturing, ordering and installing the equipment, finding the right staff to run it, and obtaining the GMP certification. Setting up a softgel manufacturing unit is also somewhat tricky. Moreover, this facility has about $1M in business and makes a modest profit.
The Company is turn-key, and its entire operational team, including its CSO, will stay on to help run the place for the new owners. The team is not only very experienced in manufacturing and maintaining strict quality control but also experienced in assisting customers with formulations.
