Would You Pay $2M for a 70-Year-Old Sandwich Factory?
Aug 19, 2025
Dive into the quirky world of a 70-year-old sandwich factory in South Carolina! The hosts debate whether its $2M asking price presents a golden investment opportunity or a hidden financial trap. They address the complexities of food manufacturing, from employee management to food safety. The discussion also highlights the strategic role of fresh food offerings at gas stations, comparing local favorites to broader market trends. Will this beloved business stand the test of time, or is it destined for a nostalgic closure?
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insights INSIGHT
Longstanding Regional Sandwich Manufacturer
The business is a 70-year-old regional maker of pre-packaged sandwiches with $5.7M revenue and $426K SDE.
It owns a 14,000 sq ft facility, large freezer, equipment, inventory, and a five-acre site which shapes its value proposition.
insights INSIGHT
Low EBITDA Per Employee Signals Labor Intensity
The operation employs 42 non-union staff producing roughly $135K revenue per employee and only ~$10K EBITDA per employee.
Low EBITDA per head signals labor intensity and potential margin pressure for the buyer.
insights INSIGHT
Perishability Forces Regional Footprint
Distribution limits growth because fresh sandwiches are regional and perishability raises freight costs.
Expansion will likely require new facilities rather than long-range shipping, constraining scale economics.
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In this episode, the hosts unpack a 70-year-old South Carolina sandwich business supplying gas stations and vending machines—and debate whether its low margins and high complexity make it a hidden gem or a money pit.
Business Listing – https://mergerscorp.com/property/70-years-old-american-producer-and-wholesaler-of-pre-packaged-foods/
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This episode features a quirky 70-year-old business in South Carolina manufacturing and distributing pre-packaged sandwiches to vending machines, gas stations, and convenience stores. With $5.7M in revenue and $426K in seller discretionary earnings (SDE), the company also owns a 14,000-square-foot facility and employs 42 non-union staff.
Key Highlights: - Asking price: $2M | Revenue: $5.7M | SDE: $426K - 70-year-old sandwich business with regional distribution - 42 non-union employees in a 14,000 sq ft facility - Potential hidden issues: low EBITDA per employee, unaccounted rent, food safety risks - Strong debate: Mills gives a thumbs up, Heather “pre-declines” the loan
Acquisitions Anonymous - #1 for business buying, selling and operating