The Business
Vasanta is the largest wholesaler and distributor of stationery and associated office products in the UK and Ireland, operating through both the reseller and direct business to business channels.
The group operates a well invested centralised distribution network with “hubs” in Leicestershire, Yorkshire and Dublin, allowing it to be the lowest cost provider in the sector with high levels of service.
The group has turnover of c.£500 million and employs c.1,400 people.
The Transaction
The Vasanta Group had previously been subject to a buyout in 2007, which resulted in a highly leveraged balance sheet that was unsustainable following the collapse in the global economy in 2008 and the resultant general slowdown that followed. A significant loss of trade credit insurance in early 2009 prompted a cash crisis that led to the group’s lenders needing to attract a new equity investor in an extremely accelerated timeframe.
Endless completed the acquisition of Vasanta Group within two weeks of submitting our initial offer, demonstrating our capability to handle a highly complex, multi-stakeholder transaction in an expedited timeframe.
By making this investment in partnership with the group’s banking syndicate, Endless has significantly de-geared the company, reducing its debt by over £200 million and introducing £30 million of new funding. In doing so, Endless has put the company on a firm platform to stabilise the business, recover market share and restore profitable growth in the coming years.
Value Creation
Despite operating in very challenging market conditions, Endless’ investment and a strong focus on agreeing short term performance targets and measures with a streamlined management team have ensured that the group returned to deliver profitable results within 3 months of the acquisition. The group is budgeting to return to healthy levels of profits and cash generation in the first full financial year following our investment.
The Endless Difference
Endless was first approached to consider investment in Vasanta on 5 July 2009. By utilising our dedicated and experienced in-house team, we were able to assess the business, make an offer, work with the banking syndicate, agree terms, complete our due diligence and finalise a deal on 21 July. In our view, this is a credential no other Private Equity House has.
Testimonials
“This transaction brings to a close a very difficult and uncertain time for Vasanta. Great credit is due to everyone involved for completing such a complex refinancing in record time.”
Martin Jenkins, Partner and Head of Corporate Finance at Deloitte in Leeds - Jul 2009
"The restructuring provides a solution to a balance sheet that was over-leveraged at the top of the M&A market."
Steve Ellis, a Partner of PricewaterhouseCoopers, which advised the banking syndicate - Jul 2009