How do I find a co-packing business for sale in Canada?

A co-packer fills, seals, labels and packs products that belong to other companies. Because it makes things for brands rather than selling to the public, it may not advertise itself, and an owner may prefer a quiet sale. That changes how you search. You will do better with several search words, a few channels and some patience than with one phrase typed into one site.

Search under the headings owners use

Listings for contract packers are filed under co-packing, contract packaging, contract manufacturing, food processing, beverage production and sometimes light manufacturing. Try each one, with and without your region. Save the searches and turn on alerts. Read each listing closely, since a plant that fills its own products is a different business from one that works for other brands.

Go to the people who hear first

Brokers who handle food, beverage and consumer-goods plants may know of a sale before it is public. Ask whom a broker acts for and what the seller wants in a buyer. Equipment dealers, ingredient and packaging suppliers and industry associations also hear when an owner is tired or planning to retire. A short, respectful note to an owner can start a conversation that never appears on a website.

Questions to ask first

Start with the customer book: who the customers are, how much of the work comes from a few of them and how long they have stayed. Ask which lines run and how busy they are, whether the premises are leased or owned and whether the owner will stay for a handover. Questions about the licences a plant needs belong with the food regulator, so ask it directly.

• List the products and package types you could realistically run.
• Prepare a short buyer profile and proof of funds.
• Be ready to sign a confidentiality agreement before you see financial details.
• Line up an accountant and a lawyer before you make an offer.

For the steps after the search, see how listings are screened and what a due diligence period means.