Official COVID-19 Information: www.sacoronavirus.co.za
Official COVID-19 Information: www.sacoronavirus.co.za
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LocationNamibia, Windhoek & Central

Sector - Retail

Asking Price
N$ 7,600,000
Monthly Profit
N$ 258,225
Asset Value
N$ 86,719
Stock Value
N$ 500,000
Yearly Net Profit
N$ 3,098,699

Summary

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Fully describe the business's activities?

Profitable business situated in Windhoek with a second branch in Namibia. This business is a gas distributor of industrial bottled gas throughout Namibia, currently supplying oxygen, acetylene, nitrogen, argon, carbon dioxide and specialized welding mixes for engineering, production and mining facilities. It also carries consumables for all welding processes and sells welding machines, abrasives and safety equipment for welders and gas cutting activities.

What Advertising/Marketing is carried out?

Advertising is carried out through the website and Facebook page.

What competition exists?

There is only one other competitor in this segment in Namibia.

How could the profitability of the business be improved?

Currently only a small geographical area is being serviced by this business in Namibia. A larger sales team chasing contracted project work, mining contracts, engineering tenders and the introduction of further LPG Gases, pub and packaging gases will greatly increase the current profitability. There is an opportunity in the marine sector to supply industrial gas, welding and cutting equipment for the maintenance of shipping vessels. This business was the supplier of such a project and found this market to be of potential. The Namibian Medical Council has recently approved this business to distribute medical gas in Namibia and therefore the current owners will begin the processes to start distributions as of late 2020.

How involved is the Owner in running the business?

The owner is involved in all major business decisions and provides assistance to sales staff on a regular basis. The General Manager who is based out of Namibia, is responsible for the daily management of the business with assistance of an Operations Manager, Sales Manager and Admin Supervisor.

When does the current lease end?

Both the branches in Namibia lease's end 2020.

What are the trading hours?

Windhoek - Monday to Thursday 07h30 to 16h30, Friday 07h30 to 15h00
Other Branch - Monday to Thursday 08h00 to 17h00, Friday 08h30 to 15h30

What are the main assets of the business?

The main assets of the business are plant machinery and equipment.

Strengths?

This business has nine years of trading in Namibia and has a rolling 10 year exclusive gas distribution contract with their supplier in South Africa for the importation of industrial and specialty gases. The existing contract expires in August 2023, however the SA supplier is prepared to renew the contract after the expiry date.

Weaknesses?

The Senior Management team is based in Cape Town and the travel and accommodation costs each month to Namibia are costly.

Opportunities?

Only a small part of the total Namibian market has been acquired to date, leaving a significant opportunity for a larger Namibian company to purchase the business and drive it forward.

Threats?

There is only one real opposition in Namibia with approximately 97% of the current market share.

What is the reason for the sale?

After a 9 year start-up period, the owner has other business obligations in South Africa and is ready to sell the business to a Namibian company.

Location

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Ursula

Ursula Gollwitzer

LocationNamibia, Namibia

Preferred method of contact

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