Our Client – The Vendor
An award winning Foodservice Distribution business comprising two inter-related divisions: Kaytering Supplies and Kay’s Wholesale Meats. Based in Northern NSW this family business had operated for over 40 years servicing 1,500 regional clients across a variety of industries including: supermarkets, restaurants, clubs & pubs, schools, hospitals and nursing homes. The Business operated from two locations with a 1,600 sqm warehouse, freezer cool rooms and dry storage areas. It had a second-tier management structure supporting a staff of approximately 60 full-time employees that ran a fleet of 20 refrigerated trucks, vans and vehicles. The Business held 65% market share across its geographical footprint with consolidated turnover exceeding $30 million and a healthy bottom line.
The Directors were three brothers, who successfully grew the Business from a start-up family butchery to an established brand recognised across the region. Given no clear succession strategy within the next generation of family members, the Directors sought to sell the Business to an external trade buyer. As business brokers specialising in mid-sized enterprises, Johnsons Corporate was appointed to assist with a national divestment campaign, comprising the sale of both divisions and associated real estate assets.
The Sales Strategy
This represented an attractive opportunity for a strategic acquirer with growth opportunities including: cost reductions through improved inventory management & IT systems; online and automated ordering facilities; consolidation and expansion of warehousing operations; revenue growth through inclusion of additional foodservice lines; and potential for expansion into adjacent geographical markets.
Johnsons Corporate’s custom research & marketing focused solely on businesses across the Australian marketplace, operating in Food Service Distribution. Johnsons ran a proactive direct marketing campaign, which also included a shortlist of prospective private equity & financial buyers, that uncovered 31 qualified interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer as well as a backup buyer, with Offer and Acceptance secured within 16 weeks of going to market.
NFD Food Services was a larger privately owned foodservice company with 3 distribution centres across NSW. Prior to acquiring our client’s Business, NFD ran a fleet of 35 vehicles delivering in excess of 2,000 general food service SKU’S and employing a staff of 80+ across its branches in Sydney, Wollongong and NSW Central Coast.
What Our Client Had to Say
"My solicitor said that by the end of the sale process most clients are asking how to avoid paying the broker fees. She'd only had one experience where her client was happy to pay - that's why I called you guys. My brothers and I have no hesitation in recommending Johnsons Corporate to other mid-sized family businesses considering a sale."Andrew Knight, Director - Kaytering Supplies