How our partnership began

Labflex was sourced through the owner’s Danish advisor, who had a strong relationship with Credo. The owner sought a generational shift, and Credo was given exclusivity to conduct due diligence and negotiate an agreement. Credo’s reputation and track record in similar industry were key factors in securing this partnership, ultimately leading to a 54% acquisition by Credo, with the family reinvesting 46%.

The transformation

Following the acquisition, Labflex faced significant challenges, including operational complexities and market constraints. Despite implementing a transformation program that included leadership changes, streamlining production, and enhancing key account management capabilities, the company struggled with liquidity issues due to large project losses. The situation necessitated a strategic decision to exit, with Credo selling its shares back to the family in early 2017.

Exit

This became a failed investment for Credo, due to a combination of project postponements, operational complexity and management underperformance. Credo quickly established a turnaround, but in the end decided not to inject the necessary additional capital, and the company was returned to the founders and the bank.

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