Botes and Dolcis (exited)
Downside Protection
BOTES
£125 million turnover construction business which was historically profitable, but underperforming at
the time of the acquisition due to three problem projects. ESO plc invested £4.6 million into a solvent
scenario in 2006, which was secured against approximately £8 million of net assets, including property.
A new management team, made up of divisional directors of AMEC, was brought in to lead the turnaround. After
four months ESO plc exited its position, recovering all capital invested and generating a 13% IRR and 1.1x
money multiple.
DOLCIS
High Street footwear retailer acquired from Alexon Group plc in December 2006 with £1.7 million invested
by ESO plc. The company had £60 million turnover, 67 stores and 138 concessions at the time of acquisition.
The buyout was led by John Kinnaird, formerly of Sports Division. The turnaround focussed on improved purchasing
and central cost reductions. However, after a period of weak trading in the run-up to Christmas 2007, ESO plc
exited its position, recovering all capital invested and generating an 8.5% IRR and 1.0x money multiple.
