ESG AS A KEY PILLAR OF VALUE CREATION. TURNKEY CASE STUDY IN VALUATION UPSIDE.

We brought in Turnkey to do an energy audit and they found $250,000 of savings. That was the trigger to convince the [Softex] CEO that someone could come in from outside, tell him about opportunities, and they were credible.
“The company went from doing nothing [in area of ESG] to providing ESG training to staff, conducting materiality assessments, and setting up real-time reporting on a range of metrics.” [1]
See more information about the roadmap described above in TURNKEY & SOFTEX CASE STUDY.
Ultimate outcome – realising value enhancement
- Softex progressed from being ESG sceptic to taking a leadership position within their industry sector and in South East Asia region, winning numerous ESG leadership awards.
- In 2020 the business was sold to US multinational Kimberly Clark.
- Deal valued at $1.2b, giving CVC a 3.3 money multiple at an IRR of 40%.
- Kimberly Clark sited the sustainability profile and policies of Softex was a key driver in expediting the deal.
Key takeaways for Private Equity
- Deal execution risk – Softex sustainability credentials enabled a smoother due diligence process from Kimberly Clark’s.
- Deal valuation upside – The operational efficiency cost savings combined with the valuation upside significantly outweighed the cost of the ESG program that was introduced.
Turnkey helps us to drive an ESG strategy into our portfolio accounts and achieve transparency of data across our client network. By using the Turnkey Software and Analytics, our clients are able to reduce their environmental impacts and associated operational cost, while strengthening their competitive advantage.
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Environmental, Social & Governance (ESG) Tracking & Metrics – A Better Way Forward
