Building a better business
In investing in Autodistribution, TowerBrook sought to create a more valuable asset by restructuring the company’s finances, rebuilding its organization, securing the jobs of its workforce and restoring its market position.
In 2009, following complex negotiations with multiple stakeholders, an equity injection from TowerBrook allowed the company to avoid imminent liquidation and continue trading, providing continuing employment to approximately 6,000 people.
In partnership with management, a comprehensive Profit Improvement Plan was developed to support Autodistribution’s transformation into a focused, efficient and profitable business.
A key feature of this plan was the decentralization of decision-making to help create a more entrepreneurial environment. The re-energized business was able to attract first-class executive talent to further strengthen the management team.
Building loyalty was also a priority for Autodistribution. Independent distributors became shareholders in the company, and employee and trade union relations improved markedly and rapidly.
Transparency with stakeholders was further improved with the introduction of new systems for reporting and compliance covering numerous aspects of the business, from rebates to product quality and customer service.
The success of the initiatives undertaken during Tower Brook’s ownership was reflected in an 8x oversubscribed bond offering in 2014 that allowed Autodistribution to further strengthen its market position and helped pave the way for exit by TowerBrook.