TRM supplies corrugated packaging solutions to mid-tier FMCG manufacturers. It employs 250 staff and was acquired by DS Smith Packaging Group in 2016.  

The Challenge

At the time of the acquisition, TRM had revenues of £41m and an EBITDA of £4.8m. Over the last five years, it has consistently delivered +10% EBITDA performances and was acquired on an 5x multiple to adjusted EBITDA. The key challenge was to deliver a step change in returns for a business that was already an industry leader.

The Solution

Our strategy was around providing a clear focus on TRM’s core operational and business strengths. This allowed us to simplify the company’s product range, which significantly reduced its operational complexity. It also enabled us to identify a clear point of difference for TRM.

The Outcome

Synergies identified and delivered within 18 months of ownership totalled £5.7m with one off costs of £1.2m (£0.5m redundancy and £0.7m capital). This more than doubled the EBITDA levels and increased the returns to above 20% at EBITDA measurements.

This was delivered through:

  • Bringing all paper supply in-house (£2.5m)
  • Simplification of product lines (£2.2m)
  • Staff redundancies and instilling best practice (£0.5m)
  • Improvement in procurement (£0.5m)

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