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GLOBAL GARDEN PRODUCTS
GGP is the leading European manufacturer of walk-behind and ride-on lawnmowers as well as a wide range of hand-held gardening equipment and accessories. Its leading brands include Stiga, Castelgarden, Mountfield, Alpina and Belos.
The company also manufactures private label products for the leading garden and DIY centres in Europe. In addition, GGP manufactures products for original equipment manufacturers including John Deere and Honda.
Deal rationale:
- 2003/2007
- leveraged buy-out
- leading player in a strongly competitive market;
- EV € 555 mln
- Acquisition of a 100% stake
- AIFI “Deal of the Year 2008” – Category Big Buy-Out
Added value:
- A new top management team was able to reposition GGP as a highly innovative producer, offering the widest product portfolio in its segment and benefiting from an increasing brand recognition both in traditional markets and in the expanding Eastern European countries. All processes were thoroughly re-engineered.
- Production: Belgian and Conegliano Veneto plant shut down but simultaneously the headquarter in Castelfranco Veneto internalised some productions which were delocalised to improve quality, construction o fan assembly plant in Slovakia (producing 625.000 lawnmowers during the first year increased to 825.000 during the second one).
- Logistics: a central logistic center was opened in Gent (Belgium) to centralize and replace four existing facilities. This move improved delivery service, reducing not only delivery time from 15 days to 3 days but also inventory levels.
- Logistics: opening of a centralised logistics center in Gent (Belgium). Time for delivery to customers shortened from 15 to 3 days while customer service was enhanced and average inventory significantly reduced.
- R&D: introduction of highly innovative products, such as the first 4WD mower, the first ethanol power engine walk-behind mower, a patented grass-catcher with new muffler and sound-proof deck whose noise is comparable to an electric lawnmower.
| Financial evolution: |
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2003 |
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2007 |
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| Sales |
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521 |
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547 |
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| EBITDA |
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71.6 |
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84 |
Divestment:
- in 2007 GGP was sold to another private equity operator;
- IRR 18.3% p.a. brazilian hair uk
www.ggp-group.com
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