Sale of Keyline Brands Limited to the Godrej Group
The opportunity
Vantis Corporate Finance won the mandate to sell Keyline Brands Ltd on behalf of the founding shareholders, who were also full time Directors of the business. The two key shareholders wanted to achieve a complete sale of their shareholdings, but were willing to stay on with the business in non-executive roles for a period post-sale.
The background
Keyline Brands was one of the few private brand owning/distribution companies in the toiletries and personal care sector that achieved outstanding levels of growth and cash generation in a highly competitive sector. The company’s portfolio of brands, and its extensive customer base, provided the opportunity for an acquirer to develop the business rapidly by further investing in the current brands, purchasing new brands, and exploiting international markets.
Key features at the time of sale:
- The brand portfolio includes several well-established names, with strong heritage and consumer loyalty (such as Cuticura, Aapri, Nulon, Erasmic and Inecto). Keyline also acted as distributor for five brands in the UK and certain parts of continental Europe (such as Bio Oil, P20 and Dax) and developed an enviable ability to attract overseas companies seeking UK distribution partners
- The Company had achieved 14 years of continuous growth in sales and profit and was forecasting turnover of c. £15m in the year of sale
- There were excellent opportunities for further growth in the UK and in export markets
- The business has an experienced management team with an excellent reputation in the sector.
Our role
- Work alongside the existing shareholders and other key management to prepare an Information Memorandum summarising the business, the products and the opportunity;
- Working with the vendors to identify and approach potential trade and private equity backed bidders;
- Lead all negotiations with interested parties on behalf of the vendors and agree satisfactory Heads of Terms; and
- Project manage the transaction through the due diligence process and the drafting of all legal documentation to ensure a smooth and timely completion.
The result
By taking a hands on approach to managing the process and specifically targeting key bidders, Vantis Corporate Finance ensured that competitive tension was maintained throughout.
Through Vantis Corporate Finance’s international contacts we sourced a bidder called the Godrej Group, one of the largest engineering and consumer products companies in India, having varied interests from engineering to personal care products. Godrej were seeking to establish a ‘footprint’ in the European personal care product market and so the Keyline Brands acquisition was very attractive as a platform for their European growth.
The transaction was completed successfully at the price, and to the timetable, originally agreed with Godrej. The company has continued to expand and is now seeking further personal care acquisition targets.