Lapeyre is a leading French manufacturer and distributor of home improvement products intended for professionals and individuals. The company offers home equipment products and furniture for indoor and outdoor use including windows, interior and exterior doors, stairs and kitchen and bathroom furniture. The company, a subsidiary of Saint-Gobain, was acquired by Mutares through an LBO in May 2021. To support the value creation plan, Lapeyre’s new ownership wanted to identify short term EBITDA savings over and above the projected annual supplier negotiation results.
What have we done:
- The Lapeyre teams, powered by EP, developed a negotiation and sourcing process to elevate the end-of-year negotiations into a broader strategic review of future collaboration in a number of key ‘destination’ categories and main inputs, such as kitchen materials, wood, aluminum profiles, faucets and plumbing, pergolas, controls.
- Using EP’s negotiation approach the joint teams (re-) negotiated on a category basis or consulted the market more broadly to identify range improvement opportunities with associated sales gains, and opportunities to improve margin through additional conditions, contributions and joint promotion plans with the newly identified category captains and challengers.
- More broadly, EP consulted the new management team on the strategic direction to take with its retail and on the roles and procurement team structure, category definition and role in the commercial strategy, translation to the offering depth and breadth per category, pricing positioning in a good-better-best structure, KPIs and management system to be put in place.
Results
As a result of the program, Lapeyre identified category captains (partners) in its main Goods for Resale categories, able to support in-year gains on top of any achieved annual negotiation results and secured more competitive supply overall. The team were able to identify upwards of €1.5m in annualized EBITDA, and an in-year impact of close to €1m
