14 Oct 2014 Sale of CEDO by Rutland Partners
Rutland Partners, the UK private equity partnership, is pleased to announce that it has successfully completed the disposal of the CeDo group of companies (“CeDo) to Straco.
CeDo is one of Europe’s leading suppliers of household disposables, manufacturing both own-label and proprietary products such as refuse sacks, bin liners, cling film and aluminium foil. It manufactures in UK, Holland, Poland and Vietnam and holds strong supply relationships with the majority of Europe’s largest supermarkets and discounters.
Rutland acquired CeDo in September 2009 for its Fund II portfolio, supporting management to restructure the business and implement a wide-ranging plan of operational improvements. These included the transfer of head office operations to the UK, development of the senior management team, introduction of strong corporate governance and reporting, investment in a new low cost manufacturing facility in Vietnam and a concerted drive to optimise manufacturing efficiency in all plants.
Straco, a private Belgian family investment company, intends to continue to grow and develop the business and is retaining the existing management team led by CEO, David Pearce.
After the disposal of a surplus property, which has been retained by Rutland, total proceeds distributed to Rutland investors over the course of the investment are expected to generate a multiple of 2.8x times the original investment and a gross IRR of 25%.
The deal was co-ordinated for Rutland by Ben Slatter, Nick Morrill and David Wingfield.
Commenting on the disposal, Ben Slatter, Partner of Rutland said:
“We are delighted with the outcome of our investment in CeDo, which has delivered an excellent return for our investors despite various market challenges. Under our period of ownership CeDo has flourished and been transformed into a market leading business with an excellent reputation amongst its customers. We wish Straco and the management team every success for the future.”
Commenting on the disposal, David Pearce, CEO of CeDo said:
“Rutland’s investment and expertise has been invaluable to CeDo. With Rutland’s support, we have successfully restructured the business and delivered significant growth over the past few years. CeDo is well placed to take advantage of new opportunities and to continue to grow; we look forward to the next stage of its development with Straco.”