Deal summary:

Company: CaseTech

Industry: Food / casings

Vendor: Adcuram

Task: Vendor Due Diligence

The meat of the matter – vendor due diligence on CaseTech by maconda illuminates a complex environment in opaque markets

maconda news April 2011

maconda GmbH, the specialist for commercial due diligence services and value enhancement projects, supported the Munich-based industrial holding company Adcuram with a detailed vendor due diligence for the sale of CaseTech to an investment company from Bad Homburg. Here, the maconda team analyzed the global sausage casing manufacturer’s various markets. The sales process was coordinated by Hauck & Aufhäuser Investment Banking.

Sausage casings that meet the different requirements of the global market entail a complex task

Case Tech is a spin-off of the sausage casing division of Dow Wolff Cellulosics GmbH (previously Wolff Walsrode AG). Adcuram acquired the tradition-rich supplier of high-quality sausage casings from Dow Chemical Company in 2008 and invested in increasing productivity, developing new products, further internationalizing the business and expanding production capacity. As a result, CaseTech became an independent company with a staff of around 420 employees and generated sales of € 60 million worldwide in 2010. The Group has sites in Bomlitz (Germany), Poland and the United States. The current transaction volume amounts to approximately € 75 million.

The many regions in which CaseTech is present were complicating the task as these were very diverse in terms of their market structure, procurement processes for sausage manufacturers and consumer eating habits. “A special challenge was understanding this complex international business, which had hardly been treated in independent, reliable studies. We therefore took an approach that was time-consuming, but very informative,” explains Dr. Rainer Mayer, Managing Director at maconda. Nearly 100 interviews with industry experts were incorporated into the analysis – all of which were performed by native speakers of the respective language. A team of business analysts, meat production professionals, regional market experts as well as sausage and meat specialists was assembled for the project.

maconda also advises wholesalers and retailers from the consumer goods and food industry within our respective competence center. The different segments that maconda has served so far include manufacturers or distributors of frozen foods, brand name sausages, meat processors, coffee, chocolates, confectionery, baked goods, wines and cereals. Our functional experience in strategy development, restructuring and transactions combined with our specialized industry expertise allows us to offer clients customized solutions.

About maconda

maconda GmbH is an independent consulting company specializing in value enhancement projects, restructurings and commercial due diligence services. Clients are typically medium-sized enterprises and renowned private equity companies. Since 2005, maconda has conducted over 100 commercial due diligence assessments – mainly for financial investors. Its core industries include consumer goods (consumables like food and cosmetics, as well as durables like furniture and clothing), wholesale and retail, healthcare, business support services (temporary work, customer service, logistics, etc.), telecommunications / internet / IT and technical industrial goods.

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