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Apparel Manufacturing In Los Angeles For Sale

Los Angeles, California - South
Asking Price:
$2,000,000 (USD)
Sales Revenue:
$8,626,416 (USD)
Cash Flow:
$484,287 (USD)

This apparel manufacturing company is the West Coast leader in its product category. They private label for some of the world’s most well respected brands as well provide smaller enterprises incubator like support services from concept to design, pattern making, execution and marketing. Their prowess centers around their manufacturing equipment and capacity as well as their development services, comprehensive cut and sew department, and the tiered pricing options they may offer from their U.S. based or their maquiladora production facility in Mexico. For higher volume or even more price sensitive needs, they have a joint-venture relationship in China. Their tiered pricing strategy and breadth of production abilities makes them a one-stop shop. A buyer will also have ability to in-source dying on-site shall they wish to.

The offering also includes the company’s bourgeoning premium clothing label. This label grew by 100% in 2014, was up 40% in 2016 and another 20% in 2017 in what many consider to be the most appealing clothing segment. It is off to a record setting start in 2018 with over $200,000 in estimated Q1 seller’s discretionary cash flow. The high-end line is tracking to do over $4.0 ml in 2018 revenues.


This sale includes the private label manufacturing company, its 12,000 square foot licensed factory operation in Mexico, its premium brand and over 63,000 square foot factory in Los Angeles. Alternately, one or more of the premise’s 3 parcels may be purchased or leased back by the buyer. The manufacturing plant, which may be purchased for ± $13ml. includes an extensive build-out as well as an estimated $1.5 ml of specialty manufacturing equipment.

Property Information

Real Estate:

Real Property Included

Business Operation

Expansion Potential:

There are several avenue of growth readily available on both the manufacturing side of the equation as well as the premium clothing label. First, the facility was build out to have extensive capacity and ideally more than 50% of total West Coast capacity and market share. It is currently operating at 35% - 45% of its total capacity. They cater to 15 - 25 clients and can certainly take additional ones on. To bolster margins, the firm has migrated into more of a consulting and advisory role for many of the influencer driven start-ups that do not possess industry know how. Though their production volume I slow and their runs are shorter they deliver more attractive margins.

One parcel of the property boasts valuable sewer rights that allow for onsite dying. It may allow the enterprise to further vertically integrate by dying product in-house, it may be repurposed for other uses. With an approximate $2.0 ml value, it may also be sold. The Mexico-based operation has the capacity to triple production and is regularly approached by competing clients, but management has chosen to maintain focus on production for their clients.

A brand-oriented operator can take the high growth brand to the next level as its creation has been approached from a production driven perspective. It has capable management and a design team as well as nationwide sales representatives; yet significant domestic and foreign growth opportunity remain. They have a high growth wholesale business and private label accounts with some of the nation’s most recognized brands. The company is now positioned to expand into the international market and to substantially increase their already formidable direct to consumer sales presence. The company is anticipating an astounding 300% - 400% growth in 2018 online sales.

Competition / Market:

The segment of apparel manufacturing is dominated by two major international firms however there are few U.S. based competitors. In fact, this plant is the largest U.S. owned private label facility of its type in the country, and likely accounts for 35% of private label production. From the premium brands perspective, competition exists with major international labels, but this brand is renowned world-wide for being the best in terms of quality and style in its product category.

Reasons for selling:

Personal

Other Information

Support & training:

2 Weeks at 20 hrs/wk

Financing available:

Owner financing may consider a small secured carry based on overall offer and buyer credit worthiness.

Furniture / Fixtures value:
$1,500,000 (USD)

Contact Information

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