Leading Winery in Niagara Seeking Investment Partner

Leading Winery in Niagara Seeking Investment Partner

This Company is a leading producer of premium wines. The winery’s revenue has been growing at an average rate of 8% over the past 5 years, with an EBITDA value at 25% of revenue in 2013. With COGS accounting for an average of 34% of sales, this is a high-profit margin business that is already cash-flow positive and poised for further growth as it has front-loaded expenses in anticipation of its major growth phase in the next five years.

Revenue is expected to grow to continue at a rate between 8% and 10%, which by 2018, its revenue will reach $2,500,000. With a stable and low COGS margin, this Company is expected to generate an EBITDA value of over $580,000 in five years.

Included in this offering is the facility and real estate that the winery operates on, as it is necessary for a winery to own vineyard in the province of Ontario. It is a 58.60 acre plot of land, with 36.22 acres of this allotted to the vineyard. This vineyard will produce ~65% of the total grapes necessary for the wine production once all blocks are in production. The remaining 22.38 acres houses the main production building (6,650 sq. ft.), barrel storage building (1,800 sq. ft.), additional storage/workshop (3,000 sq. ft.), and an outdoor event hosting pavilion (1,200 sq. ft.), as well as various free space for roads and parking lots. There remains approx. 10 acres open for further vineyard planting.

With a staff of well-tenured and experienced professionals from the industry, numerous award winning wines, and several growth opportunities, this is an ideal investment opportunity for a wine-enthusiast looking to purchase a high-growth cash flow winery and vineyard, or an existing business to diversify their product line or gain a foothold in the Canadian market by way of partnering with a premier Ontario Winery.

For sale in this offering is partial ownership interest, including the real estate holdings. The remaining ownership will remain with the Company’s Founder, CEO, and driving force behind the winery.

Business Highlights

• High profit margin business, with a normalized EBITDA margin of ~25%.
• Normalized EBITDA is project to grow to over $580,000 by 2018.
• Expenses and inventory accumulation has been frontloaded in anticipation of company’s growth phase in the next five years.
• Six generally listed wines (with two more in process) in the LCBO that account for approximately 40% of total revenue.
• The company has never missed a sales quota in the LCBO.
• Strong export growth potential.
• The Company has a well-connected distribution network.
• It has well-established brands in the LCBO.
• The Company has a well-known reputation for quality.
• The company has excellent vineyards.
• The employees are hard working and experienced.

Sale Information

Revenue: $1,660,000
Normalized EBITDA: $409,000
Inventory: ~$1,800,000
Valuation for 25% $1,500,000

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