Mayborn poised for International growth
In 2006, 3i completed a €200m public to private transaction, investing €84m of equity in Mayborn, a manufacturer and distributor of baby and household products.
The deal involved Mayborn de-listing from the AIM index, allowing the business to focus on widening its geographical customer base and promoting its brands internationally. 3i was interested in investing in Mayborn, formerly a family-run business, because of its innovative brands and strong growth potential. Mayborn owns the Tommee Tippee and Sangenic brands, which are regarded as market leaders in baby feeding, nappy disposal and related baby products. Its other division, which was built around the Dylon brand, focused on fabric dyes, cleaning products and craft accessories. Dylon had a 40% share of the European market, with key customers such as John Lewis, Tesco and Woolworths.
In May 2008, Dylon, the branded fabric dye and household products company was sold to Spotless Group. This transaction follows the earlier disposal of Impex, the arts and craft products distributor, in March 2008. Following these two disposals, Mayborn is now a pure, market leading baby and child products business operating under the Tommee Tippee and Sangenic brands.
Commenting on the transaction Jennifer Dunstan, 3i Partner: “Our interest in acquiring the Mayborn Group was to focus on the exciting growth potential of the Baby and Child Business. The disposal of Dylon was always an important part of this strategy, we are delighted that in Spotless we have found a great home for the Household Products Division which we think will be of long term benefit to the business and the people who work there.”
Nish Kankiwala, CEO of Mayborn commented: “The disposal of the Household division has been successfully delivered within the time frame envisaged at the time of the acquisition. Mayborn will now accelerate the growth of the Baby business organically and through synergistic acquisitions which support the company’s strategic goals”
A bespoke offer
3i first met Mayborn’s CEO and largest shareholder, Michael Samuel, at the end of 2005. As discussions progressed, it became clear that he and his family were interested in exiting the business. However, Michael was keen to retain some form of stake post sale. 3i Partners Alan Giddins and Jenny Dunstan spent a considerable amount of time discussing the family’s requirements and decided to create a newly formed company that would enable Michael to rollover €8m into Newco. Alan Giddins, Partner, 3i, says: “We listened to what Michael wanted and were able to put together a complete package that covered all his requirements. Although Mayborn was listed on the AIM index, it had been owned by the Samuel family for the past 60 years. It was essential for us to get the founder on board in order to obtain exclusivity and avoid having to go through a formal auction process.”
Retail experience
Through its Business Leaders Network (previously known as People Programmes), 3i came up with an impressive CEO – Nish Kankiwala. A former President of Burger King International, Kankiwala has extensive retail experience with both PepsiCo and Unilever. Dunstan explains: “Michael wanted to be sure that he was handing over control to a highly competent CEO who could promote Mayborn internationally. Nish had spent 15 years working at Unilever, had extensive experience of brand management and dealing with major retailers, and most importantly gelled on a personal level with Michael.” In partnership, 3i and Kankiwala are focusing on the Asian market – a major growth area for Mayborn. 3i is providing strategic support and advice through its offices in Hong Kong, Beijing and Mumbai and has introduced Mayborn to its retail contacts in the region.