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Case Study: Private Sector

Pan European Distribution Listed Business

Background

  • Kingsgate were appointed as CEO of pan-European semi-conductor business during the worst downturn period experienced in the sector
  • The business was significantly leveraged with gearing in excess of 200% and debt provided by a variety of pan-European banks
  • The business had grown through acquisition and had become cash constrained

Kingsgate led a full restructure of the business over a five year period including:

  • Fund–raising through rights issues
  • Debt reduction to 130%
  • Reduction in operating expenses from €110 million to €58 million.
  • Reduction of workforce from 1,300 to 600 across 20 European countries.
  • Removal of senior management team including PLC Board.
  • Reduction of inventory from €160 million to €60 million.
  • Closure of eight logistics facilities followed by the creation of a new, centralised facility in Holland.
  • Centralisation of all non-customer facing functions and implementation of a pan-European IT system