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Edible Oil Company Investment Opportunity in Esmeraldas, Ecuador

Sustainable agro-company specializing in high-oleic hybrid palm oil production with exceptional yields and growth.

Established 10-20 year(s)
Employees 100 - 500
Legal Entity S Corporation
Reported Sales USD 3.7 million
Run Rate Sales USD 3.8 million
EBITDA Margin 20 %
Industries Vegetable Farms + 1 more
Locations  Esmeraldas
Local Time 5:45 AM America / Guayaquil
Listed By Advisor / Business Broker
Status Moderately Active
Overall Rating
Partial Stake Sale
USD 4.9 million for 35.0% stake (Native Currency: USD 4,900,000)
Reason: The reason for seeking investment is that the majority shareholder wishes to capitalize on a portion... View More
Includes physical assets worth USD 9 million
Interested to connect with advisors
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Business Overview
- Number of clients: The business works primarily with 2-3 major oil palm extractors as core clients.
- Revenue model: The company generates revenue through the sale of hybrid palm oil to extractors, based on market prices, primarily tied to the CIF Rotterdam CPO and FOB Malaysia CPO benchmarks.
- Promoter Experience: The promoter has extensive experience in the agro-industry, with a focus on palm cultivation and sustainable agricultural practices.
- Business relationships: The company maintains strong relationships with leading extractors and allied companies such as Industrias Danec, La Fabril, Oleojoya, and Epacem, ensuring steady demand for its palm fruit.
- Reinvestments: Over 4 million USD have been reinvested into crop improvement, infrastructure, and logistics, strengthening the business’s operational capacity.
- Recognition: The company is recognized for its productive efficiency, achieving yields significantly higher than the national average (up to 42 tons/ha/year compared to 14 tons/ha/year).
- Business has an environment license.
Products & Services Overview
The business's top-selling product is high-oleic hybrid palm oil, and its main clients are palm oil extractors. These extractors use the palm fruit to produce crude palm oil (CPO), which is further processed for various industries, including biodiesel production, food manufacturing, and cosmetics.
Assets Overview
Tangible assets:
*Land: 831 hectares, with 650 hectares currently in palm production.
Infrastructure:
*53 kilometers of gravel roads (perimeter, primary, and secondary).
*114 kilometers of hydraulic systems for water management (drainage and retention channels).
*Agricultural, technical, and administrative camps.
*Water treatment plant.
*Ozone water plant.
*Machine rooms.
*Electric generators.
*CCTV and security systems.
*Agricultural Equipment:
*Tractors, carts, and machinery for mechanized agricultural production.
*Self-tipping carts for low-lying areas.
*Logistics fleet: Company-owned trucks with over 18 tons load capacity.
The land and plantation constitute 70% of the assets and the remaining 30% is equipment and machinery.
Intangible assets:
*Environmental licensing: Compliance with local and international environmental standards.
*Strategic planning and operational software: Advanced software systems for agricultural planning and mechanization.
*Brand and reputation: A well-established reputation for high-yield, sustainable palm oil production.
*Business relationships: Long-term contracts and strong relationships with major clients (oil palm extractors).
*Research and development investments: Continuous improvements in hybrid palm cultivation and productivity enhancement.
Facilities Overview
The facility is situated on 831 hectares, with 620 hectares currently in palm production. The infrastructure includes 53 kilometers of the perimeter, primary, and secondary gravel roads for logistical operations. Additionally, the facility has a 114-kilometre hydraulic system for water management. It is fully owned, and no rental or lease agreements are involved. The facility also houses camps for agricultural, technical, and administrative staff, along with a water treatment plant, a machine room, CCTV, and an electric generator.
Location is Eloy Alfaro, Esmeraldas.
Capitalization Overview
The business currently holds assets valued at 12 million USD. It is funded through internal revenues, reinvestment of profits, and has 3 million USD in long-term short-rate loans.
There are 2 shareholders with ownership split of 90%/10%
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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