27 January 2010 | Jake Kanter
The original investors in 4C Associates (4CA) have completed a shareholder buyout of the procurement outsourcing firm.
The bid, led by founder and new managing director Edward Ainsworth and original investor Danny Rosenkranz, was approved by the 4CA board in December and ends Deutsche Post’s role as the company’s majority shareholder.
As reported in SM in September, the German firm had been in discussions to sell its majority stake in 4CA and the outsourcing company was considering new ownership.
The buyout includes a “substantial” financial injection, which Ainsworth said would shore up the company’s “shareholder deficit”.
According to 4CA’s financial statement for the year ended 31 December 2008 – which was published in October last year – the deficit stood at £694,916, but Ainsworth refused to confirm a more up-to-date figure.
“It’s basically strengthening the balance sheet, to enable the company to grow for the future,” Ainsworth told SM.
4CA also posted a £5.4 million net loss before tax in 2008, owing mainly to the decision to close subsidiary 4CX in December 2008.
Ainsworth said the company would be reorganised and there would be less distinction between its outsourcing and consultancy divisions. “We’re going to be one company that provides one solution. We’ve got a very good outsourcing capability, consulting capability and technology capability and we want to put that together.”
He added the buyout was positive for 4CA’s existing clients, including United Biscuits and Prudential. “We will be able to offer them a much better service going forward. The guys here have been reinvigorated. Rather than just being part of a large corporate, we’re an independent that just does procurement with a real passion.”
Johan Denekamp has stepped down from his role as 4CA’s CEO, but will continue to work for the group on a consultative basis.