Profitable Distributor of Industrial Supplies

MARCH 05, 2025

We are pleased to offer for sale this excellent SE Michigan business opportunity: a 40+ year old “B to B” Industrial supplier and distributor, providing essential industrial products to their customer for decades. With retirement on the horizon, ownership seeks to transition this cash-flowing business into new hands to continue its great growth and profitability trajectory. While the non-active majority owner wishes to sell, the other partner wants to stay and continue to grow the business aggressively. Responsible for over 90% of the sales and maintaining very close, tight relationships with all the top customers, he will be an incredible asset to new ownership.

Occupying a leased, single tenant 11,000 square foot building in SE Michigan, this business serves a broad customer base both locally and nationwide. The layout of the facility makes delivery and order fulfillment a breeze, while office space on the front of the building allows an owner-operator to remain close to the business. The current triple net lease runs through 2027, with base monthly payments of approximately $6,000. Unused capacity exists for both the office area and the warehouse.

The business boasts a diverse customer base with 25 major recurring customers and scores of smaller ones that order product often. This long-time customer base is comprised of various industries such as automotive, medical, aerospace, food, construction, logistics, general manufacturing and distributors.

From packaging materials and surface protection to janitorial and safety supplies; the product lines are expertly curated, and the shop is well organized thanks to the 3 full-time staff members, including a trusted, long-time partner and minority shareholder with extensive knowledge of the operations. Other staff members have been with the company over 20 years and play integral roles with the business.

Products range from tapes, adhesives, packaging supplies, safety products, PPE, poly-based supplies, janitorial supplies, labeling, MRO, VCI, equipment & tools and more. Relationships with industry manufacturers provide excellent procurement price points and expeditious restocking of the products.

Annual revenues over the past three years continue to trend upwards averaging $2.4 million. Over the same period, the business has averaged an impressive annual EBITA of $376,000. The business is being offered for $1.75 million. The listing price is based on favorable 4.25x EBITA multiple. Included in the listing price is roughly $150,000 of active, saleable, cost-basis inventory, all fixed assets, transition training, and the goodwill of a business with a nearly 50-year history.

The sellers anticipate an asset sale, however, they are also open to an equity purchase allowing simplicity in the transaction and seamless continuity of operations with its’ manufacturers, customers, IT systems, and employees. The minority shareholder wishes to remain highly active in the business after a successful transition to new ownership, bringing with him sales and product knowledge along with maintaining deep longstanding relationships with the customer base.

This well refined business is truly a “plug-and-play” opportunity

For more information on must-see business opportunity, please contact Ryan Johnson anytime: 269-338-9809 or rjohnson@praxisbusinessbrokers.com.

Asking: $1,750,000
Cash flow: $376,000
Gross: $2,400,000
Reference ID RJ3525
Location(s): Eastern Michigan
Categories: Distribution, Services B2B, Wholesale

Contact information

Ryan Johnson
rjohnson@praxisbusinessbrokers.com
269-338-9809