RHL is one of the Europe’s leading mobile phone trade-in, recycle and upgrade programmes providers for mobile network operators, retail and corporate clients.
RHL had made a number of international acquisitions which were not properly integrated and the cost base grew significantly. Short term market challenges towards the end of 2017 exposed severe operational issues within the business. This resulted in locked in losses and financial difficulty.
BDO’s Special Situations M&A Team was introduced to run an accelerated M&A process.
A transaction was concluded with R-Capital purchasing 100% of RHL’s equity in a four week sales process. The balance sheet was significantly deleveraged as part of the transaction with a simultaneous financial restructuring implemented. The Group continues to implement a restructuring turnaround to drive increased profitability.