Case study · Private equity · Cleaning products
Acquisition Due Diligence
A full category diagnostic for the acquisition of a private-label kitchen and laundry cleaning manufacturer.
Client
A private equity firm
Industry
Private equity · Cleaning products
Result
$250MM acquisition completed
Capability
Analytic & Consulting Services
The situation
What the client was facing.
The PE firm was acquiring a private-label manufacturer of kitchen and laundry cleaning products, under an exclusive arrangement with the target’s bankers. It needed a comprehensive category diagnostic to assess market opportunity and upside.
Exclusive, time-bound deal process
Need to separate brand from private-label performance
Upside had to be evidence-based
Our approach
How we got there.
Methods used
- 01
Analyzed brand and private-label sales, share, distribution and geographic footprint
- 02
Examined pricing and merchandising across channels
- 03
Analyzed the target company’s performance in detail
- 04
Assessed consumer perception and behavior toward the category and the target
- 05
Projected future opportunities and built an acquisition perspective
Value created
$250MM
acquisition completed
Channel price gaps must be managed to protect higher-margin channels
The target’s own brands had limited share, declining sales and a value-tier position
Recommended focusing on contract manufacturing and rationalizing branded products
The $250MM acquisition was completed
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