An established European manufacturer of industrial grade lighting systems, our Client, was facing the challenge of transitioning the ownership of the business to the next generation at a time of great change and consolidation on the market.

In an industry undergoing significant change in its structure and in the technologies involved in the products – partly due to the imperatives of ecological sustainability – the robustness and availability of long-term financial resources is paramount. In the context of banking as shaped by the financial crisis of 2008 and subsequent tightening of credit policies despite government initiatives, even very long-term debt is challenging to organize in a reliable manner.

Therefore, WCA’s Client needed to deploy a tailored financial structure that would allow them both to transition the business to the next generation of owners and to pull together required financial resources to strengthen the market position of the company and potentially to acquire competitors. In an operation involving assets of total value in excess of 50 m€, a special purpose vehicle was initially used to support the generational transition as a leveraged buy-out operation. Subsequently the same legal entity concentrates financial resources required to consolidate similar businesses in Europe.

Ultimately, the special purpose vehicle may be listed on the stock market as a going concern offering a wide range of public and industrial lighting products to large corporates or governments.
WCA set-up the structure on behalf of the Client and is providing all-inclusive administration services to support the execution of the plan.