WILLAMETTE VALLEY, OREGON


Introduction

The Nursery was founded in 1976, to become one of the premier nurseries in the Willamette Valley, Oregon.The area is noted for its pristine soil and great climate to grow their signature products.

The nursery specializes in four main product categories which include containerized woody ornamentals, field grown conifers and broadleaf evergreens, perennials, and potted liners.The area has allowed the nursery to developed an impressive infrastructure to grow over 900 plus varieties of quality plant materials and distribute to a dedicated customer base.

The Owners are proud of what they have accomplished.They have developed a dynamic employee base that can manage the business.This has allowed the Owners to work on the business and take the time for family and vacations.

Competitive Advantages

The Company has earned and developed seven competitive advantages that focus on its market niche, including its longtime focus on the quality of their products and the safety of their employees. Each of these advantages contributes to the future growth and prosperity of the Company.

Future Growth Opportunity

This Company is poised for growth and with a stronger ownership drive; the possibilities for the future are vast. The Company has a solid infrastructure and strong processes and procedures that are time-tested combined with its loyal team, which boasts more than 40 years of experience. The powerful combination of the Company’s four growth opportunities and the Company’s solid reputation makes this nursery an excellent bolt on company—ideal for a private equity group, for a company desiring to diversify, or as a prime expansion opportunity for a strategic buyer.

Management Succession

Predictability of personnel and management for a buyer is vital. The current operation is strong and all processes are in place with a well-trained and loyal workforce. There are key management personnel at all levels—most of whom have been with the company for over 15 years. The Owner is looking to retire within the first year, so this is effectively a turnkey operation for the next owner.

SALES AND SELLER’S DISCRETIONARY CASH FLOW:


FY 2016 ACT.

FY 2015 ACT.

FY 2014 ACT.

FY 2013 ACT.

REVENUES

$7,144,298

$6,017,250

$5,928,594

$5,893,278

MARGIN

23.77%

15.04%

19.94%

23.61%

CASH FLOW

$611,643

$50,622

$267,879

$412,105


January through July 2017 sales revenues are $4,238,562 with profits at $820,674.

Facility: The nursery is located and operated in the Willamette Valley on almost 300 acres of owned and leased properties.

The farm property that the Owners own is leased back to the nursery at market rate terms.The property is available for sale.

The remaining leases are 10-year leases that all are renewable. The land that is being leased is only zoned for farming. The individuals that own the land desire the land to be farmed due to the property tax breaks that they enjoy.

Reason for Disposition: The Owners are at an age where they would like a staged retirement.The Company is well positioned to be grown to the next level. The Owners feel that at this time in their lives they do not have the drive or the desire to grow the business further.

Suggested Purchase Price:

Sale of Business Assets

PGI is marketing the opportunity for $10,000,000. The allocation of assets is as follows:

  • Inventory $7,768,567
  • FFE $970,000
  • Goodwill $1,261,433

Sale of Real Estate

  • Property $6,500,000

There was an appraisal completed in August 2009 for the property and buildings with a value of $5.5 million. The owners are willing to sell, lease or use the property as collateral for recapitalizing the business.

Premier Nursery

  Oct 12, 2017   pgiadmin