Success is in the bag for Rutland Partners with multi-million return on CeDo sale
SHROPSHIRE manufacturer CeDo has been sold by its private equity owner Rutland Partners to new investors in Belgium in a multi-million pound deal.
The deal represents a return of almost three times the original investment by Rutland, which acquired the business from German group Delton in 2009.
The new owner is Straco, a private Belgian family investment company. It has said it intends to continue to grow and develop the business and is retaining the existing management team led by CEO, David Pearce.
CeDo, which is based in Telford, is one of Europe’s leading suppliers of household disposables, manufacturing both own label and proprietary products such as refuse sacks, bin liners, cling film and aluminium foil. It manufactures in UK, Holland, Poland and Vietnam, and holds strong supply relationships with the majority of Europe’s largest supermarkets and discounters.
Rutland acquired CeDo in September 2009 for its Fund II portfolio. It supported the management in a restructure and then implemented a new growth plan. This included the transfer of head office operations to the UK, development of the senior management team, introduction of strong corporate governance and reporting, investment in a new low cost manufacturing facility in Vietnam and a concerted drive to improve manufacturing efficiency in all plants.
After the disposal of a surplus property, which has been retained by Rutland, total proceeds distributed to Rutland investors over the course of the investment are expected to generate a multiple of 2.8x times the original investment and a gross IRR of 25%.
The deal was co-ordinated for Rutland by Ben Slatter, Nick Morrill and David Wingfield.
Slatter, a partner of the firm, said: “We are delighted with the outcome of our investment in CeDo, which has delivered an excellent return for our investors despite various market challenges. Under our period of ownership CeDo has flourished and been transformed into a market leading business with an excellent reputation amongst its customers. We wish Straco and the management team every success for the future.”
David Pearce, CEO of CeDo said Rutland’s investment and expertise had been invaluable to the business and had led to the successful restructure of the business and its subsequent growth.
“CeDo is well placed to take advantage of new opportunities and to continue to grow; we look forward to the next stage of its development with Straco,” he said.
Joanne Hartley, the deals partner at PwC who advised Straco on the acquisition, said: “We are delighted to have supported Straco on this successful transaction, from origination through to completion. CeDo is a West Midlands head quartered business with a global footprint – and this deal highlights the growing interest from international investors in UK businesses with a successful track record and worldwide operations.”
