Softgels, Gummies, and Tincture Manufacturer in Western USA For Sale
Know-how to produce Vegan Softgels, Formulation Expertise, Deep Industry Experience
BACKGROUND
This 4-year-old Company was formed as a manufacturer of hemp-based supplements backed by scientific formulations. It offers a complete suite of services, an experienced team, and its brands of products. It also has expertise in manufacturing Vegan Softgels. And it has the flexibility to handle pilot-scale lots (as low as 30,000 units) to very large-scale production.
SERVICES
- White Label and Private Label Manufacturing
It produces a diverse range of CBD products such as vegan softgels, heat-resistant gummies, tinctures, vapes, and breath sprays.
- Formulation Support
- Branding Support
STATE-OF-THE-ART FACILITY
The Company has a 3,000 sq. ft. facility in the downtown of a major metro area. The well-equipped facility has separate production and warehousing units. The production unit is divided into multiple rooms where the product manufacturing occurs in a climate-controlled atmosphere. The floor plan of the infrastructure facilitates operational flexibility, enabling seamless transitions between various production phases.
STAFF
An experienced team operates the Company with over decades of industry experience. The Company has 11 employees and an experienced management team.
CERTIFICATIONS
The Company has received multiple internal audits in 2022 from top clients, including publicly traded companies. The Company has undergone internal reviews of its SOPs and QA/QC practices conducted by auditors, including former FDA employees. It has received approval from auditors, affirming that the Company operates per GMP standards.
The company chose not to get accredited as its customers did not need the GMP / ISO certification. However, being GMP-compliant, it would not be too difficult to get GMP / ISO certification if the buyer needs it and the seller and his team can help in the process.
KEY FEATURES
- Mastery Over Vegan Softgel Products
The Company is one of the few companies with the know-how to manufacture Vegan softgels.
- Own Market-Ready Brands
Besides manufacturing for others, it also offers soft gel products under its own brands, which can diversify the revenue with savvy marketing.
- Experienced Team
- Comprehensive Range of Services
- Flexible Manufacturing Capabilities
Bandwidth to handle projects of varying scales from large-scale bulk production (300,000 units) to small-scale manufacturing (30,000 units).
- Established Client Relationships
A network of over 385 B2B client accounts within its white-labeling business. It also serves CBD customers directly through its in-house brands.
FINANCIALS
The Company’s revenues in 2023 were $1.14 million, and it was almost at break-even. Private Label sales made up 14% of total revenue.
REASON FOR SALE
After four years in manufacturing, the owner, a serial entrepreneur, aims to focus on brand-centric activities, including publishing articles, public speaking, and writing a book in 2024. Recognizing the challenge of managing manufacturing and marketing/sales, the decision to sell is driven by the need for a buyer with stronger digital marketing expertise.
IDEAL BUYER
The ideal buyer for the Company would be a Company in custom manufacturing looking to expand or a product manufacturer looking to bring production in-house. It could also be someone savvy in marketing and passionate about CBD products.
ASKING PRICE
The asking price for this business is $2.5M. The owner has not obtained GMP / ISO certification as it was not needed for its customers. However, the owner has run the business as a GMP-compliant facility and has gone through and passed multiple client and internal audits. So, it should not be difficult to obtain these certifications. A buyer starting from scratch will spend this amount plus perhaps a year or more to get it up and running. The buyer will get a well-designed, well-equipped facility in a very convenient metro location with unique IPs, an exceptional team with manufacturing and formulation experience, mastery in vegan soft gel production, and two brands ready to be monetized with better digital marketing skills.
