Health (Baby) Products Distribution Business Sale

Expressions of interest are being sought to acquire a leading health/ baby products distributor.

The Business was established in 2007, as a product marketing and sampling business focussed on parenthood and new families. Today the business delivers 310,000 product sample bags to new parents each year across Australia. And long-term government contracts will ensure parents will continue to receive these products well into the future.

Leveraging relationships and Intellectual Property developed over more than a decade in the industry, the Business has built a strong track record of winning government procurement contracts and transformed itself into a multi-industry procurement business. It has built a procurement and distribution network that links product manufacturers with their target market. A sophisticated purpose-built fulfilment system integrates a proprietary customer database, with a client dashboard and ordering portal. Enabling product distribution and logistics, syncing suppliers with distributors and their target market. Automating the operation and reducing reliance on staff resourcing.

The Business is supported by 9 permanent staff, but due to the highly automated operating process, all staff work part time and only during school hours (4.7 FTE). The shareholders are confident continued operational excellence, business profitability and growth is sustainable over the long term under new ownership with existing term contracts and a large pipeline of new contracts.

Business Highlights:
Stable core revenue stream from long-term baby products distribution contracts;
Long term customer relationship established with over 30 Australian leading baby product brands;
Procurement contracts gained from various government agencies, corporates and hospital groups;
Purpose built system to effectively manage the delivery of projects including inventory management, processing of orders, tracking deliveries, managing warehouse workflow, and reporting; and
Multiple add-on opportunities including large customer database yet to be monetized.

Financial Highlights
High-margin automated business (34% EBITDA margin in FY21);
Strong growth profile, with revenues growing by 90% p.a. over the last 4 years (CAGR);
Delivered $8.7M+ revenue in FY20 and $2.5M+ EBITDA; and
On track to meet FY21 forecast of $3.4M EBITDA.

As a privately owned operation, the business has been conservatively managed to date, providing significant growth opportunities for a well-funded purchaser with an appetite to expand the business.