Distressed Inbound Transaction (engl.)

Project

A manufacturer of fabrics and laces for the lingerie industry, based in East Europe, looked for a strategic add-on acquisition in Europe in order to enter the European market and get access to premium lingerie brands. Until then the manufacturer mainly served the East-European and Russian market.

Task

We developed together with the buyer’s operational management a strategy for the acquisition of a distressed manufacturer of fabrics. The target’s main asset had been the since decades established relationships to premium lingerie brands in Europe and USA as well as its widely recognized fabrics development know-how. The acquisition process had to be fast in order to preserve the customer relationships and simultaneously introduce the buyer to the customers.

Results

Together with a renowned lawyer we approached the insolvency administrator shortly after the preliminary insolvency proceedings had been opened and presented a detailed offer for an acquisition of the business. In addition, we introduced the buyer to the workers council and other important stake holders of an insolvency proceeding in Germany to increase probability of success for the presented offer. We advised the buyer throughout the negotiation process.

Only eight weeks after the insolvency proceedings had been applied for the target was successfully purchased by our client. The customer relationships did not suffer. Key employees stayed with the business.

We continued our support after the acquisition and assisted the buyer in re-financing the transaction in Germany. We had been appointed later for two further strategic add-on acquisitions in Germany.