Royal Reesink is one of the largest international equipment distribution and aftermarket services platforms. Based in Apeldoorn, the Netherlands, it has four divisions: material handling, agriculture, turf care, and construction. Alongside the equipment Royal Reesink distributes it also provides spare parts, maintenance, and other lifecycle services.
Although most of its business is done in the Benelux, Royal Reesink also has a presence in Canada, Germany, the UK, Kazakhstan, Denmark, South Africa, and Turkey.
Funds advised by Triton were considering an investment in Royal Reesink and kicked off detailed IT due diligence by screening a comprehensive set of sell-side documents. Johannes Losbichler, investment advisory professional to the Triton funds says, “We knew from our initial work that technology was a critical topic for Royal Reesink. Individual divisions act almost as standalone companies and the infrastructure from these divisions - and across the diverse geographies the company serves - is not fully integrated. The company historically grew a lot through M&A and those acquisitions have not been fully harmonized in the backend. ERP and technology landscape were rather fragmented, complex, and partially outdated.”
How Intuitus helped
Johannes continues, “Our team has worked with Intuitus previously on comparable projects and has been satisfied with the work they had done, the cooperation with and performance of the team, the level of detail applied, etc. Given the complexity of the project, and the importance of the workstream, we felt that a specialised provider of technology due diligence would be key in helping us understand the potential from reshaping the firm’s future IT landscape.”
“We wanted to understand what the future IT landscape should look like. Is it a one size fits all solution or more a divisional set-up? In other words, what is an appropriate level of integration you need from a technology perspective? Additionally, we wanted to build a better understanding regarding potential OpEx and CapEx requirements as well as potential Cyber Security risks. And of course, all of this in the context of setting the stage to support the business and bring it to the next level.”
“The Intuitus report helped us to challenge our internal views as well as the respective business plan and to include an appropriate level of investment in order to run the business. It also helped us have proper, in-depth and informed discussions with the previous owners and management, for example, related to potential risk-sharing."
The Intuitus report helped us to challenge our internal views as well as the respective business plan and to include an appropriate level of investment in order to run the business. It also helped us have proper, in-depth and informed discussions with the previous owners and management, for example, related to potential risk-sharing.
Funds advised by Triton signed an agreement with Royal Reesink at the beginning of June 2019 and the deal was closed at the end of September 2019.
“We will soon kick off preparation of a full potential plan together with management,” says Steffen Schulze, investment advisory professional to the Triton funds. “This project will create alignment among all stakeholders on the current status of the company and the avenues of our joint way going forward. For example, should we consider geographical expansion? What are the ways to increase efficiency and generate further organic growth? What are the costs associated with the proposals? Among other things, we will use the Intuitus report as a starting point in our digitisation discussions with Royal Reesink’s management, especially when it comes to data transparency and data harmonisation. We think both will be key to prepare the company for the future.”