Leading Edge Labels
Transaction Background
In June 2003 Graphite Capital invested in a replacement capital transaction in Leading Edge Labels. The company prints high quality self adhesive labels, promotional material and packaging for the food industry and leading branded consumer goods manufacturers. The owner-managers wished to continue to lead the business and pursue further growth aggressively whilst de-risking their financial position. Our investment enabled them to realise value from their shareholdings. The new structure also created a pool of shares for other members of the management team for the first time.
Deal Attractions
Leading Edge had a strong history of growth and profitability within a rapidly expanding market since its foundation in 1997. It was run by two talented entrepreneurs who were hungry to pursue continued growth aggressively. The company had a highly effective operating model which created significant cost and service advantages over its competitors. It was driven by a culture of product innovation and had a service ethos which differentiated it from its competitors.
Achievements
- the management team has been broadened through the appointment of a finance director, operations director, sales director, commercial director and chairman
- the strengthened team helped manage the transition from a founder-managed small business to a stronger enterprise able to continue growth
- a second production site was opened in Peterborough in 2005
- through innovation the business has expanded its product range which has enabled it to diversify its customer base away from a reliance on the grocery retail multiples to include leading branded consumer goods manufacturers
