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Paper Packaging Company Equity Stake For Sale in Lagodekhi, Georgia

Eco-products manufacturer seeking growth through scalable natural reed alternatives to disposable plastic hospitality products.
This Business is on a Premium Plan
Established 5-10 year(s)
Employees 10 - 50
Legal Entity Limited Liability Company (LLC)
Reported Sales USD 67 thousand
Run Rate Sales USD 72 thousand
EBITDA Margin 40 %
Industries Paper Packaging
Locations  Lagodekhi
Local Time 2:57 PM Asia / Tbilisi
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 1 million for 50.0% stake (Native Currency: USD 1,000,000)
Reason: The founders built this business through its most capital-intensive and operationally demanding phas... View More
Includes physical assets worth USD 600 thousand
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Business Overview
• Eco-products manufacturing business based in Georgia, producing premium drinking straws made from natural reed as a sustainable alternative to disposable plastic straws.
• Products are designed for hotels, restaurants, cafés, entertainment venues, retail distribution, and export-oriented hospitality channels seeking environmentally friendly packaging solutions.
• Manufacturing process utilizes natural reed materials to create visually distinctive and biodegradable straws suitable for premium hospitality and corporate use.
• Business has established commercial relationships with internationally recognized hospitality and food service brands, demonstrating proven market validation within the HoReCa sector.
• Approximately USD 700,000 has been invested into production development, infrastructure, equipment, and commercialization activities since inception.
• Developed proprietary operational know-how across the full reed sourcing, processing, and straw manufacturing value chain.
• Historic market demand has reportedly exceeded production capacity, indicating supply-constrained growth potential and strong inbound commercial interest.
• Business benefits from favorable regulatory trends, including restrictions and bans on single-use plastic straws that are driving mandatory demand substitution toward sustainable alternatives.
• Revenue is generated through the sale of natural reed drinking straws and other eco-friendly products to hospitality businesses, retailers, distributors, and export markets.
• Growth strategy includes relocation to a larger production facility and installation of automated manufacturing lines targeting significantly higher monthly production capacity.
• Additional product roadmap includes adjacent eco-friendly products such as biodegradable cups, eco briquettes, reed-based pressed boards, and other disposable products derived from reed byproducts.
• Positioned for future export expansion into European and international markets where single-use plastic restrictions continue to increase demand for sustainable alternatives.
• Operates from a cost-competitive manufacturing base with scalability potential across multiple environmentally focused consumer and hospitality product categories.
• Operates with a valid registration certificate.
Products & Services Overview
Natural reed drinking straws are supplied to hotels, restaurants, cafés, entertainment venues, hospitality groups, retailers, and export-focused eco-product distributors seeking sustainable disposable alternatives.
Assets Overview
Tangible assets:
* Land and industrial structures: ~USD 180,000–220,000.
* Reed-processing and harvesting machinery: ~USD 90,000–120,000.
* Laser cutting and finishing equipment: ~USD 60,000–80,000.
* Washing, drying, sterilization, and packaging systems: ~USD 80,000–100,000.
* Logistics vehicles, cargo transport, and tractors: ~USD 40,000–60,000.
* Warehousing, storage, and utility infrastructure: ~USD 30,000–50,000.
* Solar-energy systems and water infrastructure: ~USD 20,000–40,000.

The business also possesses valuable intangible assets including proprietary production know-how, engineered processing methods, brand identity, operational expertise, and established commercial relationships within the hospitality and eco-products sector. ”
Facilities Overview
The original operating base included approximately 2,652 sq. m. of owned land, a 500 sq. m. main production building, and a 240 sq. m. auxiliary structure used for raw material handling and cleaning. The business plan also contemplates relocation to a 3.5-hectare site near Tbilisi to support further modernization, logistics efficiency, and future expansion.
Capitalization Overview
The business is currently funded through a combination of founder equity and external debt financing. There is an outstanding loan with approximately USD 87,000 remaining in principal. The company has two existing shareholders with a current ownership structure of 70% and 30%. In the event of a new equity investment, both founders will dilute their holdings proportionally so that the incoming investor will receive a 70% equity stake, while the remaining 30% will be distributed between the two founders, resulting in a post-investment split of approximately 22% and 8% respectively.
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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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