Company is a 38+ year old well-established manufacturer of wholesale Institutional and Industrial (I&I) liquid and powder cleaning compounds, serving authorized distributors who supply laundry, food service, housekeeping, industrial, oilfield and car washes across the US. Founded in 1988 with three employees in a ~3,400 SF warehouse, Company has grown steadily into a ~23,000 SF production and distribution facility that operates at the effective capacity of a ~40,000+ SF building — thanks to its 25-foot clear height ceilings and strategic off-site raw material storage with key suppliers. A Dallas central location is convenient for major customers who pick up in DFW or require nationwide shipping.
Company generates revenue through 3 complementary channels: 1) proprietary branded product lines sold exclusively through authorized distributors, 2) custom blending and co-packing for national companies who trust the company to manufacture products under their own labels, and 3) a growing word of mouth and tradeshow network for the various markets the company serves. Daily production capacity exceeds ~10k gallons of liquid blends and ~10k pounds of powdered compounds, with powdered batch sizes ranging from ~1k to ~8k pounds and multiple liquid blending tanks ranging from 220 to 1,500 gallons for bulk blending.
Business serves a diversified wholesale mix — estimated at approximately ~30% food service, ~20-25% commercial laundry, ~15-20% car-transport wash, ~15% oilfield (rapidly growing), and ~10% industrial — low dependence on any single sector. Company expanded its product portfolio in 2023 by introducing ~40+ new products, and recently converted a major former competitor's customer base following that competitor's closure, creating a significant revenue tailwind with minimal incremental cost. In fact, two significant I&I chemical competitors exited the market in 2022-2023, and the Company is capturing a meaningful share of their orphaned distributor accounts with minimal incremental cost.
The Company served ~114 active customer accounts in 2023, across Texas and nationally. The customer base is well-diversified with long average tenures — the top 10 customers have an average relationship length exceeding ~13 years, and several have been loyal accounts for ~30+ years. The top 10 customers represent ~68% of 2023 revenue, with largest customer ~14.4% of total sales and ~104 additional customer accounts, further reducing concentration risk. Customer loyalty is reinforced by the Company's proprietary formulations, custom private-label packaging, and the personal service relationships built over DECADES — factors that would be difficult for a new supplier to replicate quickly.
Company utilizes several consulting chemists each specializing in their various fields. The owner focuses on sales relationships and strategic direction, and is committed to a thorough transition. The business has well-defined safe operating procedures, strong QC systems.
Key competitive advantages include: a centrally located Dallas, TX facility offering fast distribution across the US; significant custom blending and co-packing capabilities for clients ranging from 16-oz containers to 330 gallon totes; a proven 38+ years track record of distributor service; and in-house custom label design that ensures regulatory compliance. Business currently operates at or near full capacity on a single shift, with a clear path to add a second shift to significantly expand revenue without a facility change.
NOTE: SELLER PREFERS TO SELL TO PROSPECTIVE PURCHASERS WITH CHEMICAL BLENDING, MANUFACTURING, DISTRIBUTION INDUSTRY HOLDINGS.
Purchase Price: asking price for the assets of the business is NEGOTIABLE. The seller will consider financing up to 10% of the price to a purchaser qualified/approved by the Seller. All financing is to be personally guaranteed. Seller is also open to rollover equity of up to 10% of the selling price. SELLER PREFERS TO SELL FOR ALL CASH. NOTE: THE SALE OF A BUSINESS IS CONFIDENTIAL AND DISCREET; PLEASE DO NOT VISIT THE BUSINESS OR SPEAK WITH ANY EMPLOYEES OR OWNERS.
ALL STATEMENTS, FIGURES, AND VALUES ARE SUBJECT TO A PROSPECTIVE PURCHASER’S DUE DILIGENCE. THE INFORMATION FURNISHED BY M&A ADVISOR ABOUT THE BUSINESS AND ITS FINANCIALS HAS BEEN PREPARED BY OR IS BASED UPON REPRESENTATIONS AND INFORMATION SUPPLIED BY THE SELLER. ADVISOR HAS MADE NO INDEPENDENT INVESTIGATION OR VERIFICATION OF SAID INFORMATION.
KEYWORDS: specialty chemical toll blending supply chain solvent tire shine tunnel wash self-service QSR cleaning restaurant vent hood degreaser commercial kitchen
- Asking Price:
- $7,000,000 Furniture / Fixtures and Inventory / Stock included
- Sales Revenue:
- $5,088,181
- Cash Flow:
- $1,095,225
Property Information
- Real Estate:
-
Lease
- Lease Terms:
-
The owner will lease to a qualified buyer for $22,000/month +NNN as a long-term lease plus renewal options (or sell in a separate sale, to a buyer who desires to own rather than lease). A recent bank appraisal valued the building and property greater than $4 million.
- Leasehold Rent:
-
$264,000 per annum
- Location:
-
centrally located Dallas, TX facility offering fast distribution across the US
- Premises Details:
-
The business operates from a ~23,000+/- SF industrial facility — zoned for chemical storage and strategically located for distribution across the continental U.S. The facility features a ~25-foot clear height, allowing maximum pallet stacking and storage density equivalent to a ~40,000+ SF conventional warehouse. The large land parcel includes room for an additional ~12,000 SF building with ~25-foot clear height, providing a clear path for capacity expansion without relocating. Equipment includes liquid blending tanks, powder blenders (~1,000 to ~8,000 lb batch capacity), state-of-the-art fill line (installed 2025 for ~$120,000), forklifts, packaging equipment, and full office infrastructure. The owner will lease to a qualified buyer for $22,000/month +NNN as a long-term lease plus renewal options (or sell in a separate sale, to a buyer who desires to own rather than lease). A recent bank appraisal valued the building and property greater than $4 million.
- Size in square feet:
- 23,000
Business Operation
- Management type:
- This business is owner operated.
- Expansion Potential:
-
The business uses multiple lead tactics including: 1) Repeat and referral business from existing customers and 2) Trade Shows. The Company is currently operating at or near full capacity on a single shift, creating an immediate growth opportunity through second-shift operations. A new, energetic owner can further increase sales and profits in multiple proven ways: 1) Add a second production shift to approximately double output without additional facility capital, 2) Aggressively pursue growing oilfield market, with multiple orders per month already in progress, 3) Capitalize on competitor closures, 4) Launch into a new multi-location car wash chemical account, 5) Expand the South Central US markets industrial opportunities for an estimated $500-$2.5 million/year, 6) Add a commissioned outside salesperson to systematically pursue new distributor accounts across Texas, Oklahoma, Arkansas, Louisiana, and New Mexico, 7) Expand custom co-packing/contract manufacturing revenue by marketing private label capabilities to national brands, 8) Construct additional ~12,000 SF production building on existing land parcel to permanently expand throughput capacity, 9) Leverage the Company's ~40+ new products introduced in 2025 to deepen wallet share with existing distributor accounts
- Competition / Market:
-
The owner feels that they have few wholesale I&I competitors because the market is much less crowded at the wholesale/distributor-supply level than at retail. The company is one of the last independent wholesale I&I chemical manufacturers standing in their market, actively absorbing orphaned customer accounts from two exited competitors. It's a rare and compelling story for a strategic buyer.
- Reasons for selling:
-
Retirement. The owner founded and built the Company over 37 years and is ready to transition to the next phase of life, confident the business is well-positioned for continued growth under new ownership.
- Employees:
- 10 FT + 2 PT
- Years established:
- 37+
Other Information
- Support & training:
-
Seller will train buyer for 4 weeks included with the purchase price, and is open to remaining actively involved for up to one year or longer by mutual agreement — including in a sales consulting or formulation advisory capacity. The seller's deep product formulation knowledge, 37 years of distributor relationships, and proprietary product expertise represent significant transferable value, and he is personally committed to a smooth, professional transition. Key employees — including the production manager, office manager, chemist, and experienced production staff averaging 8+ years of tenure — are expected to remain with the business.
- Owner financing:
- Owner financing is available. Please contact the seller for more information.
- Financing available:
-
The seller will consider financing up to 10% of the price to a purchaser qualified/approved by the Seller. All financing is to be personally guaranteed. Seller is also open to rollover equity of up to 10% of the selling price. SELLER PREFERS TO SELL FOR ALL CASH.
- Furniture / Fixtures value:
- $410,000 - included in the asking price
- Inventory / Stock value:
- $500,000 - included in the asking price
