Private Label Apparel Manufacturing – Nation’s Leader!

Los Angeles, CA (Los Angeles County)

Seller Financing Available
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Asking Price: $2,000,000

Cash Flow: $484,287

Gross Revenue: $8,626,416

EBITDA: N/A

FF&E: $1,500,000

Inventory: N/A

Real Estate: $13,000,000*

Established: N/A

*not included in asking price.

Private Label Apparel Manufacturing – Nation’s Leader!

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Business Description

This apparel manufacturing company is the West Coast leader in its product category. They private label for some of the world’s most well respected brands as well provide smaller enterprises incubator like support services from concept to design, pattern making, execution and marketing. Their prowess centers around their manufacturing equipment and capacity as well as their development services, comprehensive cut and sew department, and the tiered pricing options they may offer from their U.S. based or their maquiladora production facility in Mexico. For higher volume or even more price sensitive needs, they have a joint-venture relationship in China. Their tiered pricing strategy and breadth of production abilities makes them a one-stop shop. A buyer will also have ability to in-source dying on-site shall they wish to.

Detailed Information

Location:
Los Angeles, CA
Real Estate:
Owned
Not included in asking price
Building SF:
63,254
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
This sale includes the private label manufacturing company, its 12,000 square foot licensed factory operation in Mexico, its premium brand and over 63,000 square foot factory in Los Angeles. Alternately, one or more of the premise’s 3 parcels may be purchased or leased back by the buyer. The manufacturing plant, which may be purchased for ± $13ml. includes an extensive build-out as well as an estimated $1.5 ml of specialty manufacturing equipment. Finance: Owner financing may consider a small secured carry based on overall offer and buyer credit worthiness.
Competition:
The segment of apparel manufacturing is dominated by two major international firms however there are few U.S. based competitors. In fact, this plant is the largest U.S. owned private label facility of its type in the country, and likely accounts for 35% of private label production. From the premium brands perspective, competition exists with major international labels, but this brand is renowned world-wide for being the best in terms of quality and style in its product category.
Growth & Expansion:
There are several avenue of growth readily available on both the manufacturing side of the equation as well as the premium clothing label. First, the facility was build out to have extensive capacity and ideally more than 50% of total West Coast capacity and market share. It is currently operating at 35% - 45% of its total capacity. They cater to 15 - 25 clients and can certainly take additional ones on. To bolster margins, the firm has migrated into more of a consulting and advisory role for many of the influencer driven start-ups that do not possess industry know how. Though their production volume I slow and their runs are shorter they deliver more attractive margins. One parcel of the property boasts valuable sewer rights that allow for onsite dying. It may allow the enterprise to further vertically integrate by dying product in-house, it ma be repurposed for other uses. With an approximate $2.0 ml value, it may also be sold. The Mexico-based operation has the capacity to triple production and is regularly approached by competing clients, but management has chosen to maintain focus on production for their clients. A brand-oriented operator can take the high growth brand to the next level as its creation has been approached from a production driven perspective. It has capable management and a design team as well as nationwide sales representatives; yet significant domestic and foreign growth opportunity remain. They have a high growth wholesale business and private label accounts with some of the nation’s most recognized brands. The company is now positioned to expand into the international market and to substantially increase their already formidable direct to consumer sales presence. The company is anticipating an astounding 300% - 400% growth in 2018 online sales.
Financing:
Owner financing may consi
Support & Training:
2 Weeks at 20 hrs/wk
Reason for Selling:
Personal
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Michael Wildeveld - CBB, CBI, CM&AP, M&AMI, CEPA

Business Listed By:
Michael Wildeveld

Veld Mergers & Acquisitions

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Memberships & Certifications:
Indicates membership in The California Association of Business Brokers (CABB). The CABB Certified Business Broker (CBB) certification distinguishes its holder as a seasoned professional who has a solid educational background, proven accomplishments in completing deals, and an active membership in the CABB.

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