Description

Exclusive distributor with strong value add, a well diversified network of over 650 resellers of high end outdoor kitchen equipment and consumables, and expanding product lines and territories; Excellent platform for industry consolidation

Key Aspects

Ownership has recently positioned the business for accelerated growth via:
Alleviating warehouse inefficiencies by moving into a new, purpose-built, and significantly larger facility (2022)
Hiring two additional sales team members and appointing the company’s first sales manager (2022)
Taking on a high-quality manufacturer to expand the company’s offerings into the mid-range market (2019)
Replacing a slow-selling manufacturer with a stronger substitute with a broader product line (2023)
Expanding geography of exclusive rights with existing manufacturers (2022 & 2023)
Launching three new product lines in Q1 2023 that will open a wide variety of new sales channels
The business has the potential to build a lifelong customer with each sale of a grill from one of their dealers.
In addition to the $1,200 to $30,000 one-time spend, the company gains the opportunity to sell years of replacement parts, add-ons, complimentary appliances, accessories, and fuel to this growing captive base.
The company has sold nearly 60,000 grills over the last 3 years.
The built-in nature of the company’s products makes its 4,000+ SKU’s even more sticky.
Margins are attractive and consistent across the new and re-occurring products.
Proven ability to add value through a highly competent and properly motivated salesforce, comprehensive training of the dealer network, and proper stocking of grills, replacement parts, accessories, and fuel.
Highly diversified dealer mix of over 650 independent retailers (none accounted for more than 2.5% of 2022 revenue)

Opportunities

Purchase distributors in adjacent territory (some of whom have been identified/ approached the owners)
Pursue additional adjacent exclusive territories with existing suppliers especially regions that are experiencing the same increased affluent population growth as the business’ current markets
Where additional territories are not available with existing suppliers, work with new OEM’s in securing such additional territory
Expand product offering of complimentary products within existing distribution channels
Streamline logistics with a new warehouse in the company’s more recently covered areas and near likely future expansion territories
Improve digital marketing presence and customer outreach to stimulate demand at the dealer level (i.e., website revamp, social media, blog posts, podcasts, etc.)
Increase salesforce capacity to service additional dealers

Current Markets

Sales of barbeque grills in the U.S. amounted to approximately $2.75 billion in 2021 and are expected to grow at a CAGR of 6.7% through 2028 according to Insight Partners.
The company competes in the outdoor lifestyle and the barbeque grill market in the southeast U.S. According to IBISWorld, “The Southeast is largely regarded as the core region for barbecue in the United States… Consequently, demand for industry products is high in the region.”
61% of U.S. households have gas grills, 49% have charcoal or wood fired grills and 10% have electric grills. Pellet grills represent the fastest growth segment, more than doubling their unit sales from 2019 to 2021.
The market is ripe for consolidation as most manufacturers, distributors, and retailers of premium outdoor kitchen equipment are family-owned businesses.

Ownership Objectives

Ownership seeks to place the business in the hands of new ownership with experience growing distribution businesses beyond the company’s current size and is willing to remain for up to one year to transition the business.

Personnel

Total headcount of 25
6 outside sales representatives
Work remotely
Assigned territories
Tenure between 1 and 12 years
No employees anticipated to depart as a result of the sale
Revenue of +/- $1.3 million per employee/ EBITDA of +/- $191 thousand per employee

Locations & Real Estate

Business serves five states from an affiliate-owned office and warehouse in the southeast U.S that is available for sale or long-term lease.

Benchmark International

Benchmarks Exclusive Opportunities

VALUE-ADDED DISTIBUTOR OF PREMIUM GRILLS, OUTDOOR/ INDOOR APPLIANCES, AND RELATED ACCESSORIES

VALUE-ADDED DISTIBUTOR OF PREMIUM GRILLS, OUTDOOR/ INDOOR APPLIANCES, AND RELATED ACCESSORIES

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