Case Study: Private Sector
- 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