The Business
Attends is the trading name of the European operations formerly known as PaperPak. Attends manufactures and supplies a wide range of branded and own label healthcare products used to assist both users and carers dealing with incontinence. In general, the products have historically been reimbursed to the ultimate user and sold through a variety of channels to institutions, health funds and providers across all principal markets in Northern and Western Europe. There is also a growing trend of cash sales at retail. The business is based in the UK but its principal manufacturing operations are located in Aneby, Sweden.
Investment thesis
Attends Healthcare needed a hands-on investor with the courage and commitment to tackle multiple challenges simultaneously. Operational re-structuring was needed to lower costs, upgrade the product portfolio, win new customers and create a modern and highly efficient production facility. The focus was on transitioning the Attends product portfolio which was focused on incontinence products to the dynamic and fast-growing market of primarily female buyers for light to moderate pads and pull-ons. To facilitate this strategic product shift, a capex investment plan was devised to build a new high-speed production line. In the nearer term, the plan was based on a number of further operational improvements including warehouse system upgrades, line rationalisation projects, initiatives to speed up lines, and supply chain management improvements.
Exit
In January 2012 Attends was sold to Trade, Canadian Domtar Corporation, delivering a 3.3x money multiple for investors. The Trade player already owned the Attends US business and planned to align this to the European divisions post-acquisition.
