Company Name: Incident Catering Services
Address: 1429 Ave D, #166 Snohomish, WA 98290 US
Company website: www.incidentcateringservices.com
Purchase date: 2014
Transaction type: Buy / Sell Transaction
Buyer: Alpine Pacific Capital
Incident Catering Services (ICS) and OK`s Cascade Company (OKS) service the specialty event and disaster relief efforts nationwide. They provide food catering, shower, laundry, equipment rental and management services to primarily government agencies for assistance with forest fire, hurricanes and other natural disaster relief. In addition, they provide specialty event support for fundraising events such as; triathlons, marathons and organized walks for various causes and other events such as; festivals and concerts. They operate with a core of 10 employees and hundreds of seasonal workers as required. With years of experience, industry contacts and a loyal work force they are well suited for a bolt-on, roll-up or tuck-in acquisition.
Currently they operate out of three locations in WA and OR. Their office headquarters are located in Monroe, WA with 2 years remaining on the lease. Equipment storage and operation is handled from the 2 other locations; at their Twisp, WA location with 3 years remaining on the lease and at their Klamath Falls, OR facility which they own and is included in the sale of the companies.
They are the largest player in their space by depth of services and expansive territory. There are a number of smaller regional players in the various services such as; shower facilities, sanitation, event management, catering, etc. but no one with the full breadth of services and geography that ICS & OKS covers. The Red Cross is only competitor with a similar head-to-head comparison of services and geography but with an entirely different business model.
Growth and Expansion
This industry experiences significant year-to-year cyclicality to it. However the highs far out weigh the lows with a 5 year average topline of $11.703M and 5 year average EBITDA of $3.051M with an average net margin of 26%. Their event services space is a relatively new sales channel for them and it is ripe for growth. Putting focused marketing efforts to expand their specialty event services will greatly improve the bottom line and even out the cyclical lows. The most profitable growth area is annual contracts to the likes of the petroleum industry. A growing category for them with current annual revenues of ~$750,000. The annual subscription pricing model could be expanded to other cash rich industries.
Sellers are open to a small amount of Seller financing.
Reason for Selling
Part of a planned retirement for owner.
Support and Training
Sellers are willing to provide reasonable transition training and relationship transfer of customers. With the right buyer and structure Seller will consider staying on for up to 2 or 3 years to drive EBITDA and train replacement.
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