• Project Dry
Deals:

Project Dry

02 August 2017

Sector

Food manufacturing

Business description

The Company was a manufacturer of dry pet foods, predominantly dog biscuits.

Situation

Having integrated the Company into its existing business over three years, the Company was still underperforming and the Parent company decided that the Company was too much of a drain on its time and resources – they wanted assistance to consider the options available and seek a permanent solution to the issue.

BDO Role

BDO initially won a tender process and delivered an options review for consideration by the Parent, following which BDO was initially asked to plan to prepare for the solvent closing down of the Company over the following year. However, within a couple of months it was apparent that the desires of the Parent changed, such that a sale of the Company became preferable.

Outcome

Including the use of a number of European contacts within the national Special Situations M&A practise, BDO ran a discrete AMA marketing process over two months and delivered a preferred bidder to the Parent. At the commencement of the process, it was uncertain whether or not a solvent outcome would be possible; however the preferred bidder ultimately purchased the shares of the Company and delivered a return of over £0.5m to shareholders.