The Endless difference: Delivering a Consumer carve-out transaction

In today’s fast-paced and ever-changing business landscape, corporate strategy is constantly evolving.

And in recent times, those operating in the Consumer sector have faced more uncertainty and change than most. Navigating challenges including inflation, interest rates, supply chain disruptions and wavering consumer confidence has required significant management attention and focus.
 
Organisations must focus on their key strategic assets to drive future growth and stakeholder value. As a result, larger corporates may, from time to time, have non-core assets that are not aligned with their primary objectives.
 
Making the decision to divest these operations can allow focus on core operations whilst unlocking capital that can be reinvested into strategic initiatives.
 
Endless has a long track record of acquiring non-core assets from larger corporates in consumer facing industries. Our approach is to ensure that these companies are divested in a manner that benefits their organisation.
 
Key benefits that a transaction with Endless can provide include:

• We move at pace and offer the optionality to not have to go through a public and potentially protracted sales process.
• We can structure the deal to suit the organisations’ requirements and objectives.
• We can perform our financial due diligence in-house ensuring highest levels of confidentiality and avoiding third party time and costs.
• We will commit to working to a timetable and can do this by being able to transact without the need for third party or bank debt.
• We are experienced in assessing opportunities that have not necessarily been prepared for exit and can see past issues like imperfect information or incomplete management solutions.
• We offer a smooth and empathetic transition for the employees involved.

But it doesn’t end with the transaction itself. We believe that we offer a good home to protect the legacy of the business and the corporate’s reputation long term. We do this by being a proactive and supportive investor and seek to make a positive long term impact by investing both time and further capital in the businesses we own.

Examples of partnering with such corporates in Consumer facing industries include:

• Greencore – Endless agreed to acquire the cakes and desserts facility in Hull from Greencore PLC as a bolt-on to our investment in BBF. The business had not been prepared for sale but our team of in-house investment professionals were able to quickly understand the financial performance of the business and identify the carve out issues, delivering a transaction in a matter of weeks. Subsequently, we also acquired Trilby Trading Limited from Greencore as a bolt-on to our investment in KTC. Greencore had designated Trilby as non-core given their focus on the UK grocery convenience market. We were able to quickly and discreetly agree a deal that delivered value to Greencore’s shareholders despite Trilby’s high customer and supplier concentration. 

• Vion NV – Endless acquired Karro Food Group, a heavily loss making, £600 million turnover pork products manufacturer from its Dutch parent Vion NV. This complex transaction was completed in just four weeks from agreeing exclusivity, with a total Endless investment of £64 million.  Despite a flat and highly challenging market, Endless worked closely with the management team to deliver a material EBITDA improvement following our investment.  Throughout our ownership we supported the management team’s growth and investment plans ensuring Karro had a bright future. 

• Morrisons – Endless acquired Kiddicare from Wm Morrison Supermarkets plc which, at the time, was a heavily loss making business. Our offer was accepted and completion took place less than two weeks later. After acquiring the business, Endless carried out a comprehensive and positive restructuring in order to return the company back to its online heritage and to restore profitability. 

Endless is made up of a team of 45 colleagues based across the UK who between us have made investments in over 100 companies since we were established in 2005.

Please do get in touch with Aidan, Chris or another member of the Endless and Enact Investment team if you’d like to discuss an opportunity for a non-core, corporate carve-out.