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Company is a 38+ year old well-established manufacturer of wholesale Institutional and Industrial (I&I) liquid and powder cleaning compounds, serving authorized distributors who supply laundry, food... Businesses Franchises Brokers Loading... North TX Industrial-Institutional Wholesale Custom Chemical Mfr 20612 Dallas, TX (Dallas County) Asking Price:$7,000,000 Cash Flow (SDE):$1,095,225 EBITDA:$945,225 Gross Revenue:$5,088,181 Established:1988 North TX Industrial-Institutional Wholesale Custom Chemical Mfr 20612 Business Description Strategic Buyers ONLY. Strong, experienced employee team, strong financial histo Company is a 38+ year old well-established manufacturer of wholesale Institutional and Industrial (I&I) liquid and powder cleaning compounds, serving authorized distributors who supply laundry, food service, housekeeping, industrial, oilfield and car washes across the US. Founded in 1988 with three employees in a ~3,400 SF warehouse, Company has grown steadily into a ~23,000 SF production and distribution facility that operates at the effective capacity of a ~40,000+ SF building — thanks to its 25-foot clear height ceilings and strategic off-site raw material storage with key suppliers. A Dallas central location is convenient for major customers who pick up in DFW or require nationwide shipping. Company generates revenue through 3 complementary channels: 1) proprietary branded product lines sold exclusively through authorized distributors, 2) custom blending and co-packing for national companies who trust the company to manufacture products under their own labels, and 3) a growing word of mouth and tradeshow network for the various markets the company serves. Daily production capacity exceeds ~10k gallons of liquid blends and ~10k pounds of powdered compounds, with powdered batch sizes ranging from ~1k to ~8k pounds and multiple liquid blending tanks ranging from 220 to 1,500 gallons for bulk blending. Business serves a diversified wholesale mix — estimated at approximately ~30% food service, ~20-25% commercial laundry, ~15-20% car-transport wash, ~15% oilfield (rapidly growing), and ~10% industrial — low dependence on any single sector. Company expanded its product portfolio in 2025 by introducing ~40+ new products, and recently converted a major former competitor's customer base following that competitor's closure, creating a significant revenue tailwind with minimal incremental cost. In fact, two significant I&I chemical competitors exited the market in 2024-2025, and the Company is capturing a meaningful share of their orphaned distributor accounts with minimal incremental cost. The Company served ~114 active customer accounts in 2025, across Texas and nationally. The customer base is well-diversified with long average tenures — top 10 customers have an avg relationship length exceeding ~13 years, and several have been loyal accounts for ~30+ years. The top 10 customers represent ~68% of 2025 revenue, with largest customer ~14.4% of total sales and ~104 additional customer accounts, further reducing concentration risk. Customer loyalty is reinforced by the Company's proprietary formulations, custom private-label packaging, and the personal service relationships built over DECADES — factors that would be difficult for a new supplier to replicate quickly. Company utilizes several consulting chemists each specializing in their various fields. The owner focuses on sales relationships and strategic direction, and is committed to a thorough transition. The business has well-defined safe operating procedures, strong QC systems. Key competitive advantages include: a centrally located Dallas, TX facility offering fast distribution across the US; significant custom blending and co-packing capabilities for clients ranging from 16-oz containers to 330 gallon totes; a proven 38+ years track record of distributor service; and in-house custom label design that ensures regulatory compliance. Business currently operates at or near full capacity on a single shift, with a clear path to add a second shift to significantly expand revenue without a facility change.NOTE: PROSPECTIVE PURCHASERS MUST BE A STRATEGIC BUYERS WITH EXISTING CHEMICAL BLENDING, MANUFACTURING, DISTRIBUTION INDUSTRY HOLDINGS.Purchase Price: asking price for the assets of the business is NEGOTIABLE. The seller will consider financing up to 10% of the price to a purchaser qualified/approved by the Seller. All financing is to be personally guaranteed. Seller is also open to rollover equity of up to 10% of the selling price. SELLER PREFERS TO SELL FOR ALL CASH. Ad#:2529362 Attached Documents 01 TX Industrial-Institu... Detailed Information Inventory: $500,000Included in asking price Furniture, Fixtures, & Equipment (FF&E): $410,000 Included in asking price Employees: 12 (10 Full-time, 2 Part-time) Facilities: The business operates from a ~23,000+/- SF industrial facility — zoned for chemical storage and strategically located for distribution across the continental U.S. The facility features a ~25-foot clear height, allowing maximum pallet stacking and storage density equivalent to a ~40,000+ SF conventional warehouse. The large land parcel includes room for an additional ~12,000 SF building with ~25-foot clear height, providing a clear path for capacity expansion without relocating. Equipment includes liquid blending tanks, powder blenders (~1,000 to ~8,000 lb batch capacity), state-of-the-art fill line (installed 2025 for ~$120,000), forklifts, packaging equipment, and full office infrastructure. The owner will lease to a qualified buyer for $22,000/month +NNN as a long-term lease plus renewal options (or sell in a separate sale, to a buyer who desires to own rather than lease). A recent bank appraisal valued the building and property greater than $4 million. Competition: The owner feels that they have few wholesale I&I competitors because the market is much less crowded at the wholesale/distributor-supply level than at retail. The company is one of the last independent wholesale I&I chemical manufacturers standing in their market, actively absorbing orphaned customer accounts from two exited competitors. It's a rare and compelling story for a strategic buyer. The business uses multiple lead tactics including: 1) Repeat and referral business from existing customers and 2) Trade Shows. The Company is currently operating at or near full capacity on a single shift, creating an immediate growth opportunity through second-shift operations. Growth & Expansion: A new, energetic owner can further increase sales and profits in multiple ways: 1) Add a second production shift to approximately double output without additional facility capital, 2) Aggressively pursue growing oilfield market, with multiple orders per month already in progress, 3) Capitalize on competitor closures, 4) Launch into a new multi-location car wash chemical account, 5) Expand South Central US markets industrial opportunities for an estimated $500k-$2.5/year, 6) Add a commissioned outside salesperson to systematically pursue new distributor accounts across Texas, Oklahoma, Arkansas, Louisiana, and New Mexico, 7) Expand custom co-packing/contract manufacturing revenue by marketing private label capabilities to national brands, 8) Construct additional ~12,000 SF production building on existing land parcel to permanently expand throughput capacity, 9) Leverage the Company's ~40+ new products introduced in 2025 to deepen wallet share with existing distributor accounts Financing: Seller financing available Price Negotiable. Seller will finance up to 10% of Selling price to qualified buyer Support & Training: Seller will train buyer for 4 weeks included with the purchase price, and is open to remaining actively involved for up to one year or longer by mutual agreement — including in a sales consulting or formulation advisory capacity. The seller's deep product formulation knowledge, 37 years of distributor relationships, and proprietary product expertise represent significant transferable value, and he is personally committed to a smooth, professional transition. Key employees — including the production manager, office manager, ch
Why we like it
- Earnings quality is solid with $1.095M SDE and $945k EBITDA on $5.09M revenue, a healthy 18.6% EBITDA margin for a manufacturer. The book is anchored by long-tenured distributor relationships (top 10 averaging 13-plus years) and proprietary formulations that create recurring reorder behavior rather than one-off project revenue.
- The moat is real and layered: proprietary formulas, custom private-label packaging, regulatory-compliant in-house label design, and decades of personal relationships. A new supplier cannot quickly reverse-engineer a distributor's private-label chemistry and packaging, which is exactly why several accounts have stuck around for 30-plus years.
- This is a consolidation story with tailwind. Two competitors exited in 2024-2025 and the company is capturing their orphaned accounts at minimal incremental cost, while a growing oilfield segment adds new demand. Being one of the last independent wholesale I&I manufacturers in the region is a durable structural advantage.
- The operator advantage is unusually clean: the business runs at or near full capacity on a single shift with a defined path to roughly double output via a second shift, no new facility capital required. That means a buyer can grow into existing fixed costs, expanding margins rather than just revenue.
- Cleaning chemicals for food service, laundry, and industrial sanitation are consumable necessities, not discretionary spend. Restaurants, hospitals, and laundries buy these compounds in every economic climate, giving the revenue base genuine recession resilience.
How to improve it
- Add a commissioned outside salesperson to systematically pursue distributor accounts across Texas, Oklahoma, Arkansas, Louisiana, and New Mexico. The current lead engine is purely referral and tradeshow, which leaves an entire proactive channel untapped and would convert the second-shift capacity into revenue.
- Launch the second production shift to capitalize on the competitor closures. The orphaned accounts are already flowing in and capacity is the constraint, so scheduling incremental labor is the single fastest lever to convert existing demand into cash flow without capex.
- Aggressively pursue the oilfield segment, which is already generating multiple orders per month and growing fast. Dedicate formulation and sales attention here to turn a 15% slice into a leading growth vertical while the energy cycle supports demand.
- Expand custom co-packing and contract manufacturing by actively marketing private-label capabilities to national brands. This channel monetizes existing tanks and fill lines, and co-packing contracts tend to be sticky and high-volume, improving asset utilization.
- Deepen wallet share on the 40-plus new products introduced in 2025 with existing distributor accounts. Cross-selling proven formulations to a loyal base is lower-risk revenue than net-new logo acquisition and lifts revenue per account.
- Evaluate constructing the additional 12,000 SF building on the existing land parcel once second-shift demand is proven. Sequencing capacity expansion after demand confirmation protects the downside while removing the throughput ceiling permanently.
- Reduce top-10 concentration (68% of revenue) by growing the long tail of 104 smaller accounts. Formalizing a reorder and account-management cadence for these customers diversifies the book and lifts enterprise value at exit.
- Document and systematize the proprietary formulation library and QC procedures during the transition year. Codifying the founder's chemistry knowledge de-risks the single biggest key-person dependency and makes the asset far more financeable and defensible.
Diligence notes
- Scrutinize the real estate structure carefully. The building is NOT included in the $7M asking price; the owner will lease it at $22,000/month plus NNN (about $264k annual rent) or sell it separately, and a bank appraisal put the property above $4M. That rent is a real, recurring drag on the $1.095M SDE that must be modeled into go-forward cash flow.
- Validate the competitor-closure tailwind with hard numbers. Quantify exactly how much revenue came from orphaned accounts in 2024-2025 versus organic base, confirm those accounts are contracted or reordering consistently, and assess whether the surge is durable or a one-time bolus that will normalize.
- Test customer concentration and formulation ownership. Top 10 are 68% of revenue with the largest at 14.4%; confirm the proprietary formulas and private-label rights transfer cleanly with the sale, and understand which formulations are owned by the company versus the customer in co-packing arrangements.
- Assess the key-person and employee risk. The owner holds 37 years of relationships and deep formulation knowledge, and the business relies on consulting chemists plus a 12-person team. Confirm the production manager, office manager, and chemists will stay, and structure retention and a meaningful transition period given the strategic-buyer-only requirement.
- Review the SDE-to-EBITDA bridge and normalization adjustments. With $1.095M SDE and $945k EBITDA, verify what add-backs are being applied, that owner compensation is realistic for a strategic buyer's org structure, and that the numbers reconcile to tax returns across multiple years.
- Confirm environmental, regulatory, and insurance exposure. This is chemical manufacturing with zoned storage, so review permits, waste handling, OSHA and EPA compliance history, product liability coverage, and any historical spills or violations that could carry tail liability to a buyer.
Source
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