Food Manufacturer And Co-Packer

Description

Food manufacturing business for sale with two primary revenue streams: production of its own branded product line and co-packing services for outside brands.

Business profile

• Own branded food products
• Co-packing for multiple outside brands
• Modern automated production equipment
• Experienced team in place
• Established operating procedures
• Long-term customer relationships

Production capacity

The current facility has unused production capacity. The seller believes output could potentially double or increase further without relocating, although buyers should verify this through equipment throughput, staffing requirements, shift capacity and utility limitations.

Recent performance

The business experienced pressure from higher material and labor costs during 2024. The seller reports that operations have since stabilized and that profitability is improving during 2025.

Buyers should review monthly results for both years rather than relying only on annual totals, with particular attention to gross margin by customer and product line.

Customers and revenue

Revenue comes from both proprietary products and contract manufacturing. The company also maintains relationships with several outside brands that use the facility for co-packing.

Customer concentration, contract terms, pricing adjustments and minimum-volume commitments should be reviewed carefully.

Equipment

The operation includes automated manufacturing equipment that represents a significant portion of the transaction value. The seller indicates that the asking price is close to the value of the equipment.

A buyer should obtain a detailed asset schedule and independent equipment valuation, including age, maintenance history, ownership status and replacement cost.

Growth

• Increase utilization of existing production capacity
• Add co-packing customers
• Expand proprietary product distribution
• Introduce additional SKUs
• Improve purchasing and labor efficiency
• Add shifts or production days where justified

Transition

The seller is willing to provide training and transition support and may remain involved longer term under a separate agreement.

The scope, compensation and duration of any continuing role should be negotiated as part of the transaction.

Due diligence

Buyers should verify historical financials, 2025 improvement trends, gross margins by product and customer, customer concentration, backlog, equipment value, inventory, labor costs, supplier terms, co-packing agreements and working-capital requirements.

Food manufacturing diligence should also include facility permits, food-safety plans, recall procedures, labeling compliance, allergen controls, sanitation records, product liability coverage and any FDA, USDA or state regulatory requirements applicable to the products being manufactured.