Sweet carve out
During the last decade, sweets factory Lami Lutti (Belgium/France) had been the puppet of several strategic investors. Large holdings used the company merely as an investment, but neglected to put money in marketing and machinery. And although Lami Lutti had a turnover of 100 million euros, their street value was close to negative.
Lami Lutti produced its volume for private labels, but it also had its own brands. Since the latter had a higher margin, it became their focus, which in the end lead to a shortage in capacity for the private labels. Together with colleague-investor Varova, Nimbus prepared for a tough round of negotiations which seemed to continue 24/7. Once the carve out was a fact, the road was open.
The turnaround was done together with two buy-in managers, who were familiar with the branch, and the former owners of Lami Lutti. The stand-alone position once again opened the doors for private labels. Investments in new machinery were done, temporary contracts were abandoned and things started to look sweet again. Within four years, Lami Lutti was the second largest brand in France. Nimbus sold its share to Katjes, a well-known German family company aiming to build a brand portfolio.
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