An insight into acquisition services
As a wholly-owned subsidiary of US based Libman Group, Sabco were eager to execute its growth strategy and expand its product range by way of an acquisition.
Sabco engaged Pitcher Partners to provide transaction support and advice in relation to its acquisition of Asia Pacific Brands, the owners and distributors of brands such as Mr Clean and Turtle Wax.
Through its partnership with Pitcher Partners, Sabco successfully completed its first acquisition under the Libman Group’s ownership.
Pitcher Partners worked with Sabco to develop and price the initial offer, and then assisted with the counter offer. After acceptance of the offer financial and taxation due diligence was provided to ensure the acquisition was in Sabco’s best interest, with its interests protected at all times and the deal accurately and correctly reflected in the final contract. The process also identified value creation opportunities that Sabco was able to realise immediately post acquisition.
The synergistic benefits of the transaction were realised within weeks though the cross marketing of products, with Sabco’s clients receptive to the diversity of the product range at varying pricing points. Cost savings were also achieved through the consolidation of warehousing and administration.
Through diligent execution of their acquisition strategy, Sabco has successfully grown through acquisition and has significantly reduced the payback period.