A Crab processing company based in South England with a high turnover and EBITDA.

Our client processes crabs caught off British coastal waters which it then sells to a London-based packaging and distribution company. The quality of the crab meat and the processes behind its production are of such a quality that the factory has been accredited by the British Retail Consortium (BRC).

The importance of the BRC accreditation cannot be understated. Because of it, our client’s products are stocked in major supermarkets and other food outlets supplying wealthier consumers. The company also supplies restaurants with crab meat because of its taste and its clear provenance.

Guaranteed market-price supply for up to £6.5m worth of crab meat

There is something about this sale which makes it distinctive but attractive.

A condition of sale is that, with the exception of existing trade customers, all meat processed will be sold at market price to a named packaging and distribution business in London.

One fear which stops many business sales from growing ahead is a lack of clarity of who their clients would be when they grow the business.

The London distributor has indicated that they could double volume at a stroke. Over the previous three years, turnover has been steady at about £3.25m with a 16.7% EBITDA ratio.

A major raw materials purchaser and processor

Three types of crabmeat are produced in the factory:

·       White crabmeat - premium meat taken from the legs and claws

·       Brown crabmeat - meat from the main body of the crab

·       Purse crabmeat - meat recovered from the end mechanical processes

Purchasing is made direct from an extensive network of crabber boats at market price.

The main crabbing season is July to December with the pre-crabbing season beginning in April to May.  When crabs are in abundance, the factory buys as many as they can from the fisherman freezing the surplus. 

Doing this means that the company can continue to supply product throughout the year.

Staffing and management

The major shareholder takes an active role in the financial and strategic decision making within the company however day to day management is the responsibility of the four senior managers. The business functions efficiently and profitability without the presence of the shareholder director.

The company has a total of 38 staff, most of whom are involved in crab picking. Other staff include machine room operatives, cleaners, boiling staff, and floor staff/porters.

Brexit and COVID statement

Turnover, profitability, and our client’s cash-generative abilities were unaffected by either COVID or Brexit.

State of the art factory

The company trades from a 650m2 factory situated on a quiet site wholly occupied by our client. There is plenty of parking and access for HGV entry and turning area.

The company’s last major round of investment was in 2021. £200,000 was spent on equipment and on maintaining BRC accreditation. The current market value of moveable plant is £250k.

In summary

This is a rare opportunity to buy into a developed commercial supplier of high-quality seafood. The appetite for crab among the British public and restaurants continues to rise. Once exporting difficulties with Brexit have been sorted, there may lie an even greater opportunity ahead with European markets.

A new owner will have a secured purchaser for all their produce for a prolonged period of time offering stability.

More exciting is the fact that the secured buyer has enough financial and operational capacity to purchase twice our client’s current volume at a stroke.

You will be purchasing an amazing product created at a state-of-the-art factory manned by experienced, committed employees who will throw their weight behind your leadership.

Interest in the purchase of our client’s business is expected to be high. We respectfully request that, if you wish to be considered as a potential new owner, you contact us without delay.