Discover a prime investment opportunity in Wellington, Western Cape:
A Well-Established Nursery for Sale
Business Overview
This highly reputable nursery, which has been operating for 22 years, is now available for purchase. Located in the Western Cape, this nursery boasts a strong market presence and exceptional brand recognition in the agriculture industry.
Business Highlights
Established Legacy: Operating since 1980, the nursery has a long-standing reputation for supplying quality seedlings for specific sectors within South African agriculture.
Exclusive Rights: The business holds exclusive rights under contract to produce highly sought-after cultivars, with opportunities to acquire more.
The main source of income is from grafted grapevines, which supply mainly the table grape industry.
Vegetable seed production is a smaller part of the business, creating jobs and cash flow in the off-season.
Innovative Edge: Utilizing new technology exclusive to the nursery, enhancing yield and productivity.
Strategic Location Situated on a leased 30-property with a 1400-square-meter barn and 15 ha of cultivated land essential for production,.
Borehole and rain-fed dams secures a sufficient water supply.
Market and Operations
Daily Operations: Managed by an active owner living on the farm.
Client Attraction: Primarily through word of mouth and direct marketing,
Advertising and Marketing: This Includes direct marketing, sponsorships, and field days.
Contracts and Licensing: Operates under a significant license, details of which will be disclosed to serious buyers.
Financial Insights
VAT Registered: Yes
Financial Statements: Available for 2022 and 2023, with forecasts indicating a potential profit of ZAR 9 million to ZAR 15 million in the next two years.
Profitability Potential: high potential for increased profitability through marketing initiatives, technological advancements, and additional contracts.
The price includes machinery and equipment at a fair market value of R1 million.
Excludes Stock approximately R6 million at cost (depends on the season).
Staffing and Management
Team: 8 permanent staff members, with seasonal workers as needed. All staff are experienced and specialized in their roles.
Ownership Involvement: The current owner is actively involved in running the nursery, ensuring the transfer of valuable industry knowledge and practices.
Premises and Assets
Lease: The farm is rented, with the current lease ending in August 2025. There is an option for renewal. Plans to purchase other land is also an option. The business can be relocated.
Assets: This includes farming equipment, intellectual property, and stock, all insured and without any lease obligations.
Strengths, Weaknesses, Opportunities, and Threats (SWOT)
Strengths: strong brand name, exclusive production rights, high barriers to entry, and cutting-edge technology.
Weaknesses: Currently without a dedicated marketer.
Opportunities: significant growth potential as the industry recovers and expands.
Threats: common agricultural risks.
Reasons for Sale
The current owners believe the nursery would thrive under the management of a single, dedicated farmer with the appropriate skill set. Additionally, changes in some shareholders' personal circumstances necessitate the sale.
Conclusion
This nursery offers an exceptional investment opportunity with its niche products, controlled supply, and significant growth potential. As one of the leaders in the industry, it promises a lifestyle change and substantial return on investment. Don’t miss out on owning a pivotal player in the Western Cape's agricultural sector.
For more information and to schedule a viewing, please contact us.
