PPS Equipment Management Limited acquire Tfa Box Company Limited Monday, 19th April 2010
PPS Equipment Management Limited (“PPS”) have announced the acquisition of Tfa Box Company Limited (“Tfa”) in a deal advised on by RSM Tenon and Smith Cooper. The value of the deal remains confidential.
Measham based PPS provides a comprehensive range of services for users of Returnable Transit Equipment (RTE) and more specifically equipment management & tracking, plastic pallet & crate rental as well as providing a full washing solution.
Set up by David Peggie and Iain McArthur in 2002 PPS has successfully developed its activities in a range of sectors, particularly the food industry.
In early 2009 PPS began considering their strategic growth options and having decided to pursue an acquisitive route appointed RSM Tenon to assist in this process. The RSM Tenon team, led by Andy Breeze and Carl Swansbury approached Grimsby based Tfa, owned by Peter Davey and Steve Moore, which was seen as an ideal fit. Tfa offer a similar service to PPS only to the fish industry, which takes PPS into a new area of the food sector. Andrew Durbin and David Crump from Smith Cooper Corporate Finance advised the owners of Tfa on the sale.
PPS have initially acquired 87.5% of Tfa, with the remaining 12.5% being retained by Steve Moore who will also continue as a consultant of the company moving forward. Peter Davey will also remain with Tfa in his existing role. The acquisition was funded by NatWest via a package of term debt and working capital facilities.
The newly combined businesses have ambitious growth plans going forward and have already made steps to implement these with Tfa planning to relocate to new state of the art premises in Grimsby. These will provide the ability and capacity to capitalise on the significant opportunities that exist in the area, specifically the broader food sector.
Commenting on the deal David Peggie from PPS said "We are delighted to have completed the purchase of Tfa and are confident that the complementary skills of the respective management teams will ensure a very successful future for the combined business."
Andy Breeze, corporate finance director at RSM Tenon based in Leicester, added "This is a deal that makes sense to both businesses. It enables PPS to grow its interests in related markets and provides the opportunity for further expansion moving forward. At the same time the deal structure agreed meets the requirements of the vendors who will continue to play key roles in taking Tfa from strength to strength. At times, negotiations were challenging, but the flexibility displayed by all parties ensured the deal was completed, and we were delighted to play our role in that process.”
Andrew Durbin, corporate finance partner at Smith Cooper said "The acquisition is a good strategic fit and allows the medium to long term aims of the former owners to be met."
Nic Hanlon, NatWest Structured Debt Solutions and Colin Thompson Relationship Director, Business & Commercial Banking for NatWest in North Leicestershire provided funding for the acquisition. Nic Hanlon said: “Colin and I are delighted to have helped David and Iain with this acquisition, which makes very good sense for both PPS and Tfa."
Legal advice for PPS was provided by Daniel Keane at Keelys in Lichfield. David Smith at Cooper Parry provided financial due diligence for NatWest with Tom Gray at Berrymans providing legal advice for the bank.
Legal advice for the vendors was provided by Ian Sherburn at Wilkin Chapman in Grimsby.
