Highly Reputable Seeds Merchant, Boasting an Expanding Ecommerce Presence

England
Consumer, Food & Retail; Environmental, Waste & Recycling
Client Code: BN000038971
Turnover (Forecast): £1,600,000
EBITDA (Forecast): £631,000

Highly accredited seeds merchant, specialising in the supply and distribution of an unrivalled product portfolio including 2.5k different varieties of garden seed across standard and organic ranges. The company distributes products nationwide, selling direct to consumers and commercial growers via established sales channels, including its own ecommerce site, Amazon and eBay. Owing to its growing ecommerce presence, the company has experienced substantial growth since inception and orchestrates a high margin business model, recently capitalising on the emerging trends of the Pandemic in a notable surge in sales. 

Key Aspects
  • A highly regarded and rapidly growing supplier and distributor of garden seeds, boasting an enviable portfolio of c2.5k varieties.
  • Recognised brand, renowned for prioritising product quality over premium packaging, to minimise overheads and offer consumers unrivalled pricing and value for money.
  • Growing ecommerce presence with multiple routes to market, generating product sales via company website, Amazon, and eBay marketplaces.
  • Robust international supply-chain of product suppliers, with high barriers to entry in recent import regulations established by Brexit, with the company sustaining profitability & supply following challenges posed.
  • Boasts a growing and loyal consumer base, reinforced by a 5-star rating on an ecommerce review site and several thousand customers subscribed to the company’s weekly newsletter (experiencing a 12-month growth of 65%).
  • Experienced a substantial surge in demand following the popularity of new hobbies during the Pandemic, with opportunity to capitalise on emerging market trends. 
  • High volume of word-of-mouth custom, with an established foothold in the horticulture markets. 
  • Boasts a diverse product portfolio including one of the UK's largest range of organic seeds, as governed by industry associations.
Opportunities
  • Capitalise on the company’s recent market research from organic growers and continue plans to launch a separate division for its organic product range, to appeal to wider consumer base.
  • Leverage the company's recent success in additional markets including commercial microgreen supply.
  • Continue the company’s plans to reduce reliance on external ecommerce sites and drive sales via company own website to benefit from economies of scale and secure more favourable margins.
  • Continue the company's recent enactment of a more dynamic marketing initiative in 2022, including engagement with social media such as Facebook, as well as print advertising, to undertake a more targeted approach and promote the continued growth of the company.
  • Opportunity to introduce a subscription-based product, priced at a monthly revenue charge which targets the amateur gardening markets to generate a proportion of recurring revenue.
  • Opportunity for a similar acquirer to capitalise on the company's substantial investment into bespoke and custom-made packaging machinery to benefit from cross-synergies.
  • Opportunity for a similar acquirer to enhance its online profile, and benefit from an established e-commerce platform and sales channels.