McBride was formerly part of BP which had decided to concentrate on its core oil-related activities. It produced private label and minor brand household and personal care products. In July 1993 Cinven’s investors and others supported the buyout of the business by its incumbent management together with some additional senior management personnel. The business benefited from operating in growing markets and also from a high level of capital investment that had taken place prior to buyout.
Further growth in its markets was anticipated largely arising from the concentration of retailers, particularly in continental Europe but also in the UK. The company’s major customers were the large supermarket groups throughout Europe and it expected to continue working with them to develop new products as it had done in the past. In addition there was scope for reducing costs through tighter management of its production facilities.
The business progressed according to plan. By early 1995 it had become clear that an IPO would be possible and this took place in July of that year. The resulting proceeds provided Cinven’s investors with a significant capital gain on their original investment in the business.
Multiple returned on investment: 2.3x