Well-Established Manufacturer & Retailer of Natural Health Remedies & Nutritional Food Products

England
Consumer, Food & Retail
Client Code: BN000026855
Turnover (Forecast): £3,647,000
EBITDA (Forecast): £480,000

Esteemed manufacturer and retailer of a wide range of natural health and nutrition products, including health foods, remedies, supplements, and essential oils. Alongside its own-brand and trademarked products, the company also retails a carefully curated range from other leading and emerging brands; all of which are ethically and sustainably sourced. The company sells direct to consumers – both in the UK and overseas – via its established sales platforms, including its own ecommerce site, other major online marketplaces, and select retailers.

Key Aspects
  • Experienced a sustained surge in demand as a result of the Covid-19 pandemic.
  • Manufacturing facility can accommodate an estimated 3x current capacity, offering a highly scalable solution.
  • New website and advanced ERP system - which is already in operation for a number of functions – set to be launched in 2021.
  • Retains the UK and European intellectual property rights and trademarks for various own-brand product ranges and materials.
  • Capable second-tier management able to oversee day-to-day operations, with minimal input from the current shareholders.
  • Robust network of primary and secondary suppliers ensures consistency and continuity of supply.
  • Boasts a growing and loyal customer base and, of its new website customers, 20% purchase again within 7 months (consistently in the last three years).
  • Many customer relationships have been in place for a number of years, and the company has maintained a customer retention rate of 80-90% month-on-month.
  • Owns a sizable part of the value chain which yields more favourable profit margins and enables increased agility and responsiveness to the market.
  • Focus on providing information about health, nutrition, and lifestyle attracts a large amount of organic web traffic.
  • Continuously adds to its own brand product portfolio and its range of curated other brand products which continue to be a key source of growth.
  • Frequently recognised in leading ecommerce reports which comprise a performance-based assessment of multichannel retailers.
Opportunities
  • Continue to expand and diversify the company’s existing product range to capitalise on growing demand across the marketplace for alternative health and nutrition supplements.
  • Grow the company’s own-brand range of recipe-based products, capitalising on existing success and demand, to drive sales and promote significant uptake.
  • Develop further the company’s recently introduced range of own-brand capsules, with a view to bringing manufacturing in-house to boost margins.
  • Purchase higher up the supply chain for some of the company’s higher volume requirements to benefit from economies of scale and secure more favourable margins.
  • Launch new Euro-UK website in 2021 which will provide multi-lingual and multi-currency options to grow the company’s international presence.
  • Enact a more dynamic marketing initiative, including engagement with social media, events, influencers, and print advertising, as well as undertaking a more targeted approach, to promote the continued growth of the company.
  • Represents an opportunity for a complementary acquirer to enhance and diversify its existing offering, with a view to capitalising on significant cross-selling prospects across a combined client base.
  • Ideal opportunity for an acquirer with additional resources and a fresh impetus to facilitate the company’s business development plans and promote its continued growth.
  • Opportunity for a similar acquirer to enhance its online profile, and benefit from an established ecommerce platform and sales channels.