INVESTMENT Case
Brenderup Group
Brenderup is the leading independent European trailer manufacturer with a unique trailer rental solution.
During Accent Equity's ownership, the business developed from a non-core business for the previous owner into a modern and innovative group with strong profitability and well-established processes that makes it well positioned for continued profitable growth. The revenues increased above market growth and the EBITDA grew 4.1 times.
During Accent Equity's ownership, the business developed from a non-core business for the previous owner into a modern and innovative group with strong profitability and well-established processes that makes it well positioned for continued profitable growth. The revenues increased above market growth and the EBITDA grew 4.1 times.
Industry:
Production, distribution and rental of trailers
Type of investment:
Corporate restructuring (carve-out)
Investment theme:
Accelerated growth, operational enhancement
Entry/exit:
2014/2021
At the time of investment, Brenderup was a business unit within Thule Group. It was the leading trailer manufacturer in Scandinavia with a proprietary rental concept. The products were well recognized, the business had three production sites whereof the ones in Denmark and Sweden respectively were subscale and not ideally set up for efficient production. The degree of product complexity was high and some critical system-wide supply chain processes were lacking.
The business was acquired by Accent Equity in May 2014 after a lengthy process, including incorporation, separation issues and due diligence to cater for a controlled transition. Since then, the company has successfully implemented a solid commercial strategy focused on developing the brand recognition, distribution network, the trailer rental business footprint and sustainability-based product development. Further, operational improvements, such as reduced assortment complexity, seamless production processes as well as supply chain transformation, including consolidating the manufacturing footprint, have significantly contributed to Brenderup Group's operating excellence. As a result of the implementation of the initiatives, Brenderup Group has during Accent Equity's ownership grown its revenues organically by approximately 55%, and EBITDA has increased by 4.1 times.
The business was acquired by Accent Equity in May 2014 after a lengthy process, including incorporation, separation issues and due diligence to cater for a controlled transition. Since then, the company has successfully implemented a solid commercial strategy focused on developing the brand recognition, distribution network, the trailer rental business footprint and sustainability-based product development. Further, operational improvements, such as reduced assortment complexity, seamless production processes as well as supply chain transformation, including consolidating the manufacturing footprint, have significantly contributed to Brenderup Group's operating excellence. As a result of the implementation of the initiatives, Brenderup Group has during Accent Equity's ownership grown its revenues organically by approximately 55%, and EBITDA has increased by 4.1 times.
Key initiatives and results during Accent Equity's ownership
- Transformation from a carved-out business area to a self-sufficient stand-alone business in its own rights by building its structure capital in all relevant areas, including changes of key management positions
- Operational excellence by centralizing the production to Poland and a new top modern assembly site in Sweden
- Reduction of product complexity by reducing the number of SKUs from 4000 to 1000 and the number of core brands from 12 to 4 as well as closing down the unprofitable horse trailer segment
- Redesign of the supply chain processes with seamless deliverables and responsibilities to drive efficiency and productivity gains
- Increased market shares following product development and design as well as market leading customer support
- Two acquisitions within the rental segment (Midtrailer and Rental 24) that manifested the no 1 position and catalysed the launch of a fully digitalized rental model
- During Accent Equity's ownership, revenues has grown above market pace and EBITDA has increased by 4.1x
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We are very thankful to Accent Equity and the board for the trust, strategic contribution and internal development guidance we have received over the years. We have gotten full support in all challenges we have faced, and thanks to the professional direction from Accent Equity we have been able to build a business with a market leading offering that is well-positioned for future growth and operational excellence.
Exit rationale and process
The combination of the initiatives taken having a substantial effect on the margins and the surge in demand during the pandemic lead to that an exit process was initiated in late 2020. Interest were shown from both industrial and financial buyers. The company was sold to Storskogen, a Swedish industrial compounder of small and medium sized companies.
The combination of the initiatives taken having a substantial effect on the margins and the surge in demand during the pandemic lead to that an exit process was initiated in late 2020. Interest were shown from both industrial and financial buyers. The company was sold to Storskogen, a Swedish industrial compounder of small and medium sized companies.