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Case Study Of Berendsen

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In 2002, the Davis Service Group acquired Berendsen, a company operating in Denmark, Sweden, Norway, Austria, the Netherlands, Poland and Germany. Berendsen was an ideal acquisition because, like Sunlight, it was the market leader in providing textile services in its geographical area. was better for the Davis Service Group to take over Berendsen rather than set up a new rival company in Europe. Building on Berendsen”s local experience and local market contacts, Davis Service Group could buy into established networks and customer relationships.
When the Davis Service Group took over Berendsen, Berendsen was not performing financially as well as it could. Profitability was below that achieved by Sunlight. The Davis Service Group already had proven management systems in providing textile services.
Taking over Berendsen, rather than merging with it, gave Davis Service Group the control to put the best systems in place at Berendsen. It was able to: reduce operating costs, for example, closing down some locations where Berendsen had two outlets …show more content…

£150 million was raised through selling more shares to existing shareholders. The remainder of the £425 million to purchase Berendsen came from new bank borrowings.The Davis Service Group successfully delivered the promised returns to its shareholders over the period 2002-2005 and has seen its share price rise

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