A Factory for Alcoholic Beverages ($ 3.2 million) - Sale of Business

Investors are invited to an operating enterprise in alcohol industry (primary products - vodka, bitters and sweet liqueur). The factory is in operation, products are manufactured until June 2010. Proposed share of the company - 100%, the cost of $ 3,2-million, the seller - Bank.

The main benefits of the proposal:
• may be provided a loan by the Bank to purchase the company
• an operating enterprise with a 4-year history (debugged manufacturing processes, the immediate commencement of return on investment)
• investment looks attractive on financial ratios, 2011: EV / S - 0,78-0,85, EV / EBITDA - 3,6-4,5
• the equipment can produce good quality products at lower and middle price segment (the most sought market)
• premises can significantly scale the production
• optimal location of logistics enterprise - in the heart of Ukraine
• large market capacity and low sensitivity of consumption to economic crises.

Brief description of the enterprise

The company is located in the heart of Ukraine, and registered as an LLC. Works in the manufacture of alcoholic beverages from 2007. It worked also in 2010, has a license to manufacture alcoholic beverages, and has contacts with suppliers and distributors. Required staff to work in a shift - 45 people, 2 shifts - 65 people.
Products are in the lower price segment - the standard vodka (Wheat, Posolskaya and so on) and bitters (With pepper, Zubrivka, etc.), sweet liqueurs and wine drinks.

Capacity of the Enterprise

The maximum capacity is 1267 thousand bottles of 0,5 l per month, or 63.3 thousand (working in 2 shifts). Working capacity is about 1000 thousand bottles of 0.5 liters per month or 50 thousand (with rhythmic organization of supply, production, and marketing). At the current legislatively minimum of selling price of vodka 13.61 USD / bottle. This is equivalent to a monthly sales 13.6 millions (from excise duty and VAT).

Property and Communications
The territory, which the factory occupies is 3.3 hectares (at least until 2057), fenced, with round-the-clock security. The driveways in the town are asphalted.
Total area - 8,5 thousand m2. Industrial premises - 8,1 thousand m2 (shops, warehouses, a weight room, boiler room, workshop and alcohol cellar), administrative buildings - 0,3 thousand m2.
Centralized water supply and sanitation. Substation capacity of 180 kW, boiler house (2 gas boiler). Relationship between stages of production ensures a converted network of pipelines.

Production equipment
Alcohol cellar - 13,5 thousand (3 tanks). Department of Water Treatment - Reverse osmosis BW-300-17P (commissioning exploitation-2003) with capacity of 6 tons / hour. Equipment blending and liquor shops are in good condition. In the dispensing workshop is bottling line for the bottle 0,5 l (1984, 3000 bottles / hour) and the bottling line for the bottle 0,25 l (2003) – both - standardized round bottle in good condition.
A technological process in the enterprise is organized in accordance with accepted industry standards and norms.

Detailed information on the operations and assets of the enterprise is granted after signing a confidentiality agreement.

Contact us on Merar if you are interested investors.