Tag Archives: Acquisitions

Food & Drink, News, North of England

Panicium acquires The Bury Black Pudding Company

An award-winning iconic producer of black puddings is primed for ‘step-change growth’ after becoming the third acquisition for artisan speciality food group Panicium.

Panicium has acquired The Bury Black Pudding Company (BBP) for an undisclosed sum.

The deal follows Panicium’s acquisitions of handmade cakes and biscuits producer Margaret Hall and specialist potted meats and spreads manufacturer Binghams Food in 2018 and 2021 respectively.

BBP, founded by managing director Debbie Pierce, has expanded into a business with turnover of £11.5m, employing 122 staff operating from a 25,400sq ft factory in Bury.

Graham Norfolk, one of Panicium’s founding directors, said it remains business as usual for BBP and its workforce, adding that the group would invest to further grow the newly-acquired company and build on its strong foundations by introducing new product ranges, increasing its market share and expanding and developing customer relationships.

Debbie and production director Richard Morris remain in their roles and join Panicium’s senior management team following the acquisition.

BBP has over 50 years’ manufacturing experience and uses a gold medal-winning recipe that dates back over a century alongside traditional production methods.

Black pudding is synonymous with Bury and is part of the town’s heritage, and BBP’s dedication to quality has helped it become one of the leading brands in the UK.

BBP selects the finest quality ingredients and manufactures the healthiest black pudding on the market, with less than three per cent fat and no artificial preservatives. With its high iron and nutritional values, low-fat black pudding has been recognised as a superfood.

As well as its continued focus on the production of traditional black pudding, BBP has developed vegan, gluten-free and chilli varieties.

It has one of the longest-established stalls on Bury’s world-famous market, with generations of families coming to buy its renowned black puddings. The same black puddings are also supplied to major supermarkets, foodservice companies, wholesalers, hotels, butchers and restaurants across the UK.

Debbie began working on her local market at the age of 12 as a Saturday girl and spotted a gap in the market for a quality black pudding on supermarket shelves.

She became business partners with Richard, who had taken over his father’s black pudding business after spending his teenage years working there. Over the years, BBP has grown significantly and remains committed to offering local job opportunities, including taking on apprentices and teaching them skills in the food manufacturing industry.

Debbie said: “Having steadily grown our sales and developed new business, Richard and I decided that it was time to start the next phase of business growth through becoming part of a group that is committed to the quality of its products and maintaining the family values of which we are so proud. BBP is poised for step-change growth and will benefit from investment and market extension available through the Panicium group.

“Our product range is complementary to the Panicium strategy and we share a number of routes to market. Ultimately, our products are consumed by people who love artisan, quality food. We look forward to working with the Panicium team to develop the group’s position as a leading supplier of quality foods.”

Graham Norfolk said: “The Bury Black Pudding Company makes artisan, high-quality, delicious products with a distinctive brand, and complements Panicium’s strategy of acquiring companies in the UK artisan food sector to develop a portfolio of brands characterised by their hand-made, high-quality nature with a distinctly regional identity.”

News

New era for Harper McDermott with sale to Employee Ownership Trust

LEADING personal insolvency firm Harper McDermott Ltd, one of the largest providers of Protected Trust Deeds and Debt Payment Plans under the Debt Arrangement Scheme in Scotland is embarking on an exciting future after transferring to employee ownership in a transaction led by business advisers Grant Thornton UK LLP.

The Glasgow-based company trades as Trust Deed Scotland, which, since 2009, has helped more than 25,000 people resolve their problem debt. The Trust Deed Scotland brand was founded by Mark Sommerville and Jon Paul Kelly and is the best-known provider of Protected Trust Deeds in Scotland. It has an industry leading No.1 ranking on Trustpilot in the debt relief service category with over 5,000 5* reviews from Scottish customers.

The business is currently managing debt solutions for over 9,000 customers with £234m of debts under management, and a team of around 70 people – who are all now part-owners of the business – led by Managing Director and Insolvency Practitioner, Thomas Fox.

Thomas Fox said: “I am delighted to have become a part-owner in the business alongside our knowledgeable and experienced team, who I believe provide a best-in-class service to our customers.”

“We are all looking forward to the future with excitement and confidence and to helping many more people deal with their debt issues in a practical and compassionate manner.”

“Employee ownership provides many benefits; from existing staff retention through to attracting the best talent, it gives our team job security and brings us closer together as one team all working towards similar goals.”

“I am very grateful to the Grant Thornton team for leading us through this transition with such dedication and diligence.”

Neil McInnes, Partner and Head of Corporate Finance in Scotland at Grant Thornton said:

“We have been working with the business to help them consider the range of strategic options open to them.”

“Ultimately the best option for all stakeholders was to move to employee ownership via an Employee Ownership Trust (EOT), which gives the entire team a stake in its future success and provides a great incentive for staff loyalty.”

“We are seeing an increasing number of profitable mid-sized companies looking at EOT as an option. For exiting shareholders it can be an attractive alternative to the more traditional trade sale or private equity process, and allows the business to continue to thrive in the safe hands of the incumbent team.”

“We wish Thomas and the whole team at Harper McDermott every success in the future.”

Neil was assisted in the transaction by Akshay Sharma and the firm’s dedicated EOT team led by Monique Beaulieu and supported by Ollie Dewdney and Amarveer Johal, which provide a holistic end-to-end service advisory service to businesses transitioning to employee ownership.

News, South East

Gloomy economic forecasts fail to dampen mood for East of England businesses

Despite gloomy economic forecasts, business leaders in the East of England are optimistic about their growth opportunities for the year ahead.

According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker*, mid-market optimism in the East of England has rebounded across all indicators monitored:

Revenue growth expectations have risen +37 percentage points (pp) since October

Economic optimism has risen +35pp since October

Profit growth expectations are rising – increasing +17pp since October

The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +39pp since October. Over half (62%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.

The top concerns for the region’s mid-market heading into 2023 are winter blackouts, geopolitical tensions and the rising tax burden, all of which they feel sufficiently prepared to manage.

The mid-market continues to struggle to attract and retain talent, with 65% of respondents experiencing unusually high attrition rates. Over half (60%) are also struggling to recruit for open roles.

But employers are pulling out all the stops in a bid to remain competitive. Just under three quarters of respondents (73%) are planning to offer their people a pay rise in line with, or above, inflation, while 90% are also reviewing their employee benefits package to make it more competitive. Almost half (46%) are planning to invest more in skills development over the next six months.

The research also finds that the mid-market is starting to look for ways to reduce its reliance on people, with over two thirds (67%) agree that they are increasing their use of automation and digital.

James Brown, Partner and Practice Leader at Grant Thornton UK LLP in the East of England, said: “It is surprising that the market’s positivity levels are at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since October, when the shock and uncertainty from the mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker. The certainty provided since seems to have reassured the market.

“Even though we know the economy and operating conditions are not likely to improve much in the short term, it is perhaps better to have bad news over uncertainty. Certainty over the future allows businesses to work this into their forecasts and take action to soften the impact.

“While a potential recession is often in the headlines, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people. It is interesting to note the focus on skills development, which shows a commitment to making staff more efficient as well as a desire to manage retention levels and costs.

“Having seen first-hand how our region responded to the challenges of recent years with determination, flexibility, enterprise and innovation, I am confident that businesses in the East of England will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence.”

Midlands News, News

West Midlands ready to ride the storm amid gloomy financial forecast

Despite gloomy economic forecasts, business leaders in the West Midlands are optimistic about their growth opportunities for the year ahead.

According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker*, mid-market optimism in the West Midlands has rebounded across all indicators monitored:

Profit growth expectations have grown +47 percentage points (pp) since October

Revenue growth expectations have risen +33pp since October

Economic optimism has risen +29pp since October

The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +37pp since October. Over half (60%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.

The top concerns for the region’s mid-market heading into 2023 are industrial action and the rising tax burden, both of which they feel sufficiently prepared to manage.

The mid-market continues to struggle to attract and retain talent, with 56% of respondents experiencing unusually high attrition rates. Over half (56%) are also struggling to recruit for open roles.

But employers are pulling out all the stops in a bid to remain competitive. Over three quarters of respondents (78%) are planning to offer their people a pay rise in line with, or above, inflation, while 92% are also reviewing their employee benefits package to make it more competitive. Over a third (44%) are also planning to invest more in skills development over the next six months.

The research also finds that the mid-market is starting to look for ways to reduce its reliance on people, with over three quarters (88%) agreeing that they are increasing their use of automation and digital.

James Brown, Partner and Practice Leader at Grant Thornton UK LLP, said: “The market’s positivity levels are surprisingly at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since the shock and uncertainty from October’s mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker.

“The certainty provided since last October seems to have reassured the market. Even though we know the economy is not likely to significantly improve in the short term, it is perhaps better to know what is happening even if the news is bad rather than grappling with surprises that can’t be planned for.

“While a potential recession seems to be looming, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people.

“Having seen first-hand how our region responded to the challenges of recent years with determination, agility, enterprise and innovation, I am confident that businesses in the West Midlands will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence in its prospects for 2023.”

Midlands News, News

Gloomy economic forecasts fail to dampen mood for East Midlands businesses

Despite gloomy economic forecasts, business leaders in the East Midlands are optimistic about their growth opportunities for the year ahead.

According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker*, mid-market optimism in the East Midlands has rebounded across all indicators monitored:

Revenue growth expectations have risen +36 percentage points (pp) since October

Profit growth expectations are rising – increasing +24pp since October

Economic optimism has risen +22pp since October

The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +20pp since October. Almost three quarters (74%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.

The top concerns for the region’s mid-market heading into 2023 are the rising tax burden and wage increases, both of which they feel sufficiently prepared to manage.

The mid-market continues to struggle to attract and retain talent, with 64% of respondents experiencing unusually high attrition rates. Over half (62%) are also struggling to recruit for open roles.

Employers are pulling out all the stops in a bid to remain competitive. Over three quarters of respondents (84%) are planning to offer their people a pay rise in line with, or above, inflation, while 76% are also reviewing their employee benefits package to make it more competitive. Almost half (44%) are also planning to invest more in skills development over the next six months.

The research also finds that the mid-market is starting to look for ways to reduce its reliance on people. Over three quarters (76%) agree that they are increasing their use of automation and digital.

James Brown, Partner and Practice Leader at Grant Thornton UK LLP, said: “The market’s positivity levels are surprisingly at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since the shock and uncertainty from October’s mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker.

“The certainty provided since last October seems to have reassured the market. Even though we know the economy is not likely to significantly improve anytime soon, it is perhaps better to know what is happening even if the news is bad rather than grappling with surprises that can’t be planned for.

“While a potential recession seems to be looming, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people.

“Having seen first-hand how our region responded to the challenges of recent years with determination, agility, enterprise and innovation, I am confident that businesses in the East Midlands will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence in its prospects for 2023.”

News

Palatine exits first impact investment with sale of adult learning provider to City & Guilds

Palatine has successfully exited its investment in Trade Skills 4U, the market-leading provider of electrician training schemes, with the sale of the business to City & Guilds.
Palatine backed Trade Skills 4U in 2017 as the first investment from its Impact Fund which was established to invest in commercially driven businesses with a mission to positively impact on society or the environment. Since then, it has supported the business to open two new training centres in Leeds and Coventry, appoint a new chairman and financial director and improve the digital infrastructure.
The growth has led to an increase in the business’ impact, with the number of students completing career changer courses each year having more than doubled since 2017. Resulting in thousands of students having their career prospects positively impacted over the period of Palatine’s investment.
Trade Skills 4U was founded by CEO Carl Bennett in 2005 and focuses on the adult training market. It provides a range of electrical courses for individuals who have little or no electrical knowledge and those already in the profession who are looking to enhance their skills. Key to its mission is lowering the barrier to entry for adults seeking new career opportunities such as people who have left the military.
During the last five years, Palatine has also supported the development and introduction of NVQ and apprenticeship programmes, making the company’s training relevant to an increased number of students. Supporting people of all ages to train and retrain in skills that leads to jobs aligns exceptionally well with City & Guilds’ purpose, making City & Guilds the natural home for the next stage of Trade Skills 4U’s growth journey.
City & Guilds is a Royal Chartered Institute and a registered charity with a mission to provide the opportunity for people to retrain and relearn, gaining new skills at every stage of life, regardless of where they start.
Matt Coles, Impact Fund Investment Director at Palatine, said: “As our first ever Impact investment we are incredibly proud of all we have achieved with Carl and the Trade Skills 4U team over the last five years. Together we have grown an exceptional business which is having a clear impact on addressing skills shortages and improving social mobility in the UK.
“City & Guilds represents a natural home for Trade Skills 4U to continue to grow its scale and impact and we look forward to following the business’ future journey.”
Carl Bennett, Founder and CEO of Trade Skills 4U, said: “Over the last five years it has been a pleasure to work with the Impact team at Palatine with whom we’ve shared a learner-centric approach to growth, always prioritising the outcomes we can deliver. Their support and commitment has made this a rewarding and enjoyable journey.
“Joining City & Guilds is a natural progression for our company and team, as we work to continue to cement our position as the UK’s leading provider of electrical skills training to individuals and businesses.
Kirstie Donnelly MBE, Chief Executive of City & Guilds said: “Trade Skills 4U is joining the City & Guilds community at a critical time as the UK grapples with severe skills shortages. Trade Skills 4U prides itself on inclusivity and removing barriers to work, ensuring individuals from all walks of life can access high quality skills training that leads to meaningful careers. This perfectly aligns to our City & Guilds purpose of helping people into jobs and by championing this together we can ensure that we are further providing opportunities and the skills needed to succeed.”
News

Arrow partners with POPX to automate operations and integrate acquisitions

Arrow Business Communications, one of the UK’s leading independent providers of collaboration, connectivity, cyber security and cloud and infrastructure managed services, has partnered with POPX to implement their fully managed MSP Platform to transform operations, service and business management functions.

For Arrow to continue its growth trajectory and focus on customer experience, a strategic decision was made to invest in the latest service management technology aimed at enhancing both employee and customer experiences. Following an intense period of growth through acquisition, the business imperative pivoted to ensure all operations in the acquired businesses consolidate into a single standard.

The initiative labelled “One Customer Experience. One Platform” will give Arrow the advantageous capability to quickly integrate acquired businesses onto a future-proofed service management solution. After narrowing down the technology choice to ServiceNow, Arrow selected POPX as the ideal option to de-risk their investment with a fully managed service, run by skilled ServiceNow specialists with experience in the managed services sector.

Jason Briscoe, Chief Operating Officer at Arrow said: “Too much work in our industry is delivered by committed people using manual, isolated processes, and aged tooling. All this leads to frustration, ineffective delivery, inflated overheads, greater risk, and an inability to manage cost and quality, all at the expense of customer satisfaction. As we acquire new businesses, and to help realise the maximum value from those investments, we will integrate them onto the very best service management platform available. In this way, we aim to turn the operations of every part of our growing business into scalable value-creation machines.”

The POPX MSP Platform is designed to accelerate and de-risk digital transformation for Smart MSPs by enabling them to onboard ServiceNow faster, with greater transparency on cost, timescales and added value. The MSP Platform allows tech service providers to consolidate applications, integrate internal and supplier systems, and deliver service automation for key processes. The fully managed service from POPX includes all integrations, development and enhancements, upgrades and maintenance, as well as training and the day-to-day support of running a complex technology.

Richard Burke, CEO at Arrow commented: “Service value and customer experience runs through our DNA and that’s why we wanted to enhance our service proposition to truly deliver on our promises today but ensure we have a platform that scales for tomorrow. With POPX, we can integrate previous and future acquisitions onto one system, resulting in efficient operations that deliver an outstanding customer experience.”

Martin Ford, CEO at POPX said: “Arrow has successfully grown at speed over recent years and as a result, they have been on an extensive digital transformation journey. We’re delighted to be part of that team, operating as a long-term partner that will guide and support them through this next phase of growth and beyond.”

News

Grant Thornton in top gear with £182m sale of Motor Parts Direct

Grant Thornton UK LLP’s corporate finance team has advised on the sale of Motor Parts Direct Group, the UK’s leading independent retailer of after-market car parts and accessories. 

The privately-owned Hertfordshire-based company, which had annual sales of £158m (2021), 175 branches nationwide and over 1,700 employees, has been acquired by Motus Holdings, South Africa’s leading automotive group for £182m. 

The acquisition significantly strengthens Motus’ UK and European presence and gives it a strong market position in the UK after-market parts sector. 

The shareholders of Motor Parts Direct, were advised by a team led by partner Mike Tillson, assisted by Ryan Shields, Calum McDonald and Misha Brooks. Grant Thornton also provided due diligence and tax structuring services on the transaction – demonstrating the power of its complete M&A solution.   In a statement, the board of Motus Holdings said: “The acquisition is aligned to Motus’ international growth strategy for the after-market parts business and will reduce the Group’s dependency on vehicle sales.   “The acquisition will provide economies of scale, group procurement benefits and synergies. The business is cash generative and asset light. The existing management team, excluding any members of the family, are committed to remain and grow the business. Key management have been secured and are committed to continue managing the business into the future.” 

Mike Tillson said: “The rise of Motor Parts Direct is a classic entrepreneurial growth story. From starting the business in 1999 from his Hertfordshire living room to building a market-leading multi-million enterprise, Mukesh Shah MBE, the shareholders and the management team have created an exceptional market-leading business.” 

Mr Tillson added: “Despite some clear economic headwinds, M&A is still very much on the agenda, and a number of overseas buyers remain keen to acquire quality UK assets.” 

Other advisers working on the transaction on the sell side includes law firm Freeths,  Jonathan Hambleton and James Cowell (corporate) and Sam Pancholi (property). 

Motus Holdings were advised by a team from law firm Irwin Mitchell led by Emma Callow. 

FInance, Finance and Banking, News, South East

Grant Thornton advises Norfolk entrepreneurs on strategic sales

A CORPORATE finance team from Grant Thornton UK LLP has advised on two key deals in Norfolk within a week, as the firm continues to lead the way in the East Anglia region.
The first transaction saw listed Midland building materials company Epwin plc acquire Norwich-based plastics recycling specialist Poly-Pure for £15m.
Founded four years ago, Poly-Pure is a fast-growing materials re-processor, recycling post-consumer and post-industrial PVC building materials, notably UPVC window frames and was seen as a strong strategic fit by Epwin.
In Poly-Pure’s financial year ended 31 July 2022, it expects to report revenues of £10m and adjusted EBITDA of £2.5m.
The second transaction, which was also led by Corporate Finance Director Stuart Davies, was the sale of Computer Service Centre Limited by its founders Christopher Cooper and Jeremy Clarke to private-equity-backed managed IT services provider Acora.
Founded 25 years ago, the Norwich-based company has 60 staff and is a leading provider of IT managed services to more than 100 SMEs in the South and East of the UK.
The acquisition, for an undisclosed sum, was Acora’s seventh in the last five years and enables it to offer a new service line in the 50-250 user market,
Stuart Davies of Grant Thornton said: “We are delighted to have delivered excellent outcomes for the entrepreneurs behind Poly-Pure and Computer Service Centre. In both cases there are compelling reasons for the sales and both companies will now be able to accelerate their already impressive growth by being part of larger businesses.
“Despite a more challenging economic environment,  the M&A market remains strong in Norfolk and East Anglia alike,  with continuing trade and Private Equity appetite for good quality businesses , which is reflected in both these excellent deals.”
Mr Davies was assisted by Adam Furrer in the Computer Service Centre transaction and Ned Brown on the Poly-Pure deal.
News

Grant Thornton completes double deal as international investors target Scottish leisure sector

Grant Thornton UK LLP’s Corporate Finance team in Scotland has advised international buyers on two acquisitions of leisure-related businesses, amid strong interest in the sector as it recovers from the pandemic.
Over the last month, Grant Thornton has advised French event infrastructure specialists GL Events on their acquisition of Edinburgh-based Field & Lawn, and advised on the acquisition of Castle Stuart Golf Links by leading international golf resort developer Cabot.

Founded in 1986, Edinburgh-based multi-service event specialist Field & Lawn Ltd has four business offerings; event marquees and structures, temporary industrial buildings, placemaking and festive lighting solutions. Major events include Six Nations rugby events and Christmas light displays across the country, complementing GL Event’s current offering, enhancing its all-year round revenue stream.

Meanwhile, Canada-based Cabot has committed to significantly investing in the Castle Stuart course, which is located near Inverness in the Highlands and is regarded as one of the best golf courses in Scotland, having hosted the Scottish Open four times, Cabot’s plans for the resort, which will be renamed Cabot Highlands, include adding a second 18-hole course and building luxury homes, dining and retail facilities.

Advising on these two acquisitions in the buoyant leisure sector marks a strong end to the first half of the year for Grant Thornton’s Scottish Corporate Finance team.

Neil McInnes, Corporate Finance Partner at Grant Thornton UK LLP, said: “The pandemic and related social restrictions took its toll on everyone, especially those businesses operating in the leisure sector.
“Now, as we enter our first summer post-pandemic, we are really witnessing an uptick in deal activity, as leisure, hospitality, travel, events and other sectors alike, are all beginning to flourish.

“With these two acquisitions we have seen international buyers attracted to high-quality, strategic Scottish businesses, reinforcing the continued interest from foreign investment in Scotland, and the wider UK, as a marketplace. It is not just leisure we are seeing this in, it is across a broad spectrum of sectors, including technology, healthcare and ESG.”