CASE STUDY

GOLDEN CIRCLE LTD

Overview

  • Golden Circle is one of Australia’s best known food manufacturers producing canned fruit and vegetables, chilled fresh and long life juices, cordials, jams and baby foods
  • In October 2007, Anchorage (together with equity partners), subscribed $35.5 million for 35% of Golden Circle
  • Under Anchorage ownership, a ‘back to basics’ manufacturing program was implemented focused on production efficiency and waste reduction
  • Golden Circle was successfully sold to H.J. Heinz in December 2008

Transaction background

Shares in Golden Circle were previously 100% owned by pineapple growers, however the company's capital structure had become unsustainable.
Anchorage and its equity partners acquired a 35% shareholding in Golden Circle in October 2007. The new equity injection facilitated repair of the balance sheet, while enabling existing shareholders to participate in the future upside.

Business overview

Founded in 1947 and based in Brisbane, Golden Circle operated as a co-operative until corporatisation in 2005. 
Golden Circle is one of Australia’s best known food manufacturers producing canned fruit and vegetables, chilled fresh and long life juices, cordials, jams and baby foods

Turnaround program

Golden Circle had developed a well trusted, premium brand with a reputation for high quality product. The turnaround program was largely focused on operational issues and included the following key initiatives:
  • Organisational competence and culture: Redesigned the organisational structure and improved management team accountability
  • 'Back to Basics' manufacturing: program established to improve efficiency, reduce wastage and remove production bottlenecks
  • Cost of sales & pricing: improved sourcing as well as product recipes and formulation; rationalised SKUs and increased pricing
  • Customer relations: Improved relationships with key customers
  • Product development: Improved product development process and speed to market as well as growing share in attractive categories

Exit

Golden Circle was successfully sold to H.J. Heinz in December 2008.