Posted on 15 October 2014
After a lively start to the year, only one private equity buyout was recorded in the East Midlands during the third quarter, but while the number of deals has declined, the total value for 2014 to date is exceeding the whole of 2013.
Figures from the Centre for Management Buy-Out Research (CMBOR) showed there was a total of seven MBOs and MBIs in the region to the end of September– of which six were during the first half. The deals have a total value of almost £427.9m, with an average value of £61.1m.
The seven transactions include a recent management buy-out advised on by our own Corporate Finance team. This involved SRM Industries Limited, a leading manufacturer of precision rubber mouldings based in Hatton, Derbyshire. The deal saw founders Mike and Yvonne Spare handing over the day to day control of the business to the management team comprising of James Rodgers (Managing Director), Paul Barton (Sales and Marketing Director) and Martin Spare (Finance Director), who will steer its future growth and development.
Since January 2014, our team have completed 14 deals including Mel Morris’ acquisition of a stake in DCFC, the sale of the personal injury business of Derbyshire solicitors Flints to an Australian plc, the sale of Coffee Snobs Limited to international buyer Kout Food Group plc, the sale of Contigo to global acquiror Trayport, and the MBO of Evac+Chair.
Despite the reduced buy-out numbers recorded in the East Midlands by CMBOR, we are pleased to have bucked the trend by delivering MBO’s in both the East and West Midlands; I believe the apparent downturn will prove to be temporary. As regards other transactions, we have been exceptionally busy with both disposals and acquisitions and we expect the increased activity to continue. This is an opportune time for business owners to re-evaluate growth or exit aspirations!