Case Studies
Jeyes In September 2002, LGV completed
the MBO of Jeyes, the household products division of IWP International
plc ("IWP") in a €134m transaction.
Norfolk-based Jeyes manufactures, distributes and markets products for
the household cleaning and hygiene markets. In the year to 31 March
2002 it had sales of €296m and EBITA of €15.9m.
Jeyes management, led by Chief Executive Mike Colley, pursues a strategy
of developing its own brands, third party brands and retailer brands
in product categories where its technical competence and product knowledge
can give it a sustainable competitive advantage. These categories include:
- toilet care - through brands such as Bloo and Parozone it
has achieved significant growth in recent years and is a leading branded
player in the UK toilet care market;
- air care - technical innovation in this area has enabled
it to grow strongly; and
- wipes - Jeyes has the leading brand in the UK: Wet Ones.
Jeyes' products, which also include Jeyes Fluid, Tiger Tim firelighters
and Globol insect control, are distributed in over 60 countries. In order
to strenghten its market position, Jeyes has recently increased marketing
expenditure on existing brands such as Bloo and Parozone (a common theme
in LGV consumer deals) and has a highly active new product development
programme.
The deal was structured as a joint venture with LGV managed funds acquiring
a 44% shareholding in Jeyes, IWP retaining a 35% stake with the balance
held by the management team of Jeyes. In addition to its equity participation,
IWP received €101m in cash. This is another example of LGV's strategy
in working with trade partners where appropriate.
The MBO also marks the return to Jeyes of David Callear in the role of
non-executive chairman. He was Chief Executive of Jeyes at the time it
was acquired by IWP in 1998.
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