Case Studies

In July 2000 Golden Wonder was sold to Bridgepoint Capital in a secondary management buy-out for £156.5m. LGV’s return on the total equity invested represented a multiple of 4 times. Golden Wonder is a major UK savoury snacks producer that owns, manufactures and markets a number of the UK's leading savoury snack brands such as Wotsits, NikNaks, Wheat Crunchies and Golden Wonder crisps.

LGV acquired Golden Wonder in 1995, as part of a management buy-in led by CEO, Clive Sharpe, from its previous owners, Dalgety plc for £68m. Since LGV's acquisition, the company has been successfully restructured, refocused and transformed into one of the most successful, low-cost, brand-focused snack businesses in Europe.

The key drivers of the turnaround were:
  - redirecting the business towards higher margin
  - snack products
  - tighter working capital management
  - extensive advertising expenditure, particularly behind     the growth brands
  - committed capital investment (including a £30 million     programme in 1999)
  - factory rationalisation (consolidating the factories from 3     to 2)
  - new product development, exemplified by the launch of     Wafflers and stackable chips in the spring of 2000.

For further information on Golden Wonder contact Michael O'Donnell.