Metabo is a leading manufacturer of hand-held power tools for professional users, offering a wide range of portable and semi-stationary power tools sold in 120 countries across the globe. Key customers are specialist retailers, industrial customers, as well as to a lesser extent DIY stores. Metabo is clearly perceived as a premium quality professional brand with a particular edge through a highly competitive range of cordless power tools.
Context of the investment Managed and owned by the founders, Metabo went through difficult times due to (i) a failed expansion strategy and (ii) the economic downturn, which made it necessary to restructure the business. The operational restructuring was led by a new management team, which implemented a strategic repositioning plan in 2012, updated the product offering and reorganized the company to be more competitive. Despite returning to profitability Metabo remained overleveraged.
Chequers entered the capital of Metabo as majority shareholder. Being close to the new management team, Chequers provided them with strong support aiming at deleveraging the company and implementing a successful strategy.
Role of Chequers Chequers supported the management team in implementing their repositioning plan, which encompassed (i) focusing on professional users, (ii) implementing a new brand strategy, (iii) optimizing production flows, as well as (iv) broadening the product offering to enter new markets and segments.
The key measure implemented involved the development of a competitive range of cordless products and new market leading battery technologies. This brought Metabo to the forefront of cordless development, the strongest growth segment in the global power-tool industry.
Results Following the implementation of this strategy, Metabo succeeded in generating trade interests. Metabo was sold to its Japanese competitor Hitachi Koki in 2016.