200 year-old manufacturer bought by Canadian investor
An independent hot dip galvanizer firm which was started in 1809 has been taken over by a Canadian private equity firm.
Ardenton Capital, which has its UK headquarters in Manchester, has made its maiden purchase after agreeing a deal for Corbetts the Galvanizers.
The Telford-based company’s managing director Tim Ward and finance director Sophie Boothroyd have both invested alongside Ardenton.
The value of the deal was not disclosed, but in 2015 a £10.5m takeover bid by a subsidiary of Hill & Smith Holdings faltered after the Competition and Markets Authority wanted to pursue its investigation into the creation of a monopoly.
Joe Rai, representing the vendors Ajmer Singh Rai and Baksho Kaur Rai, said: “The vendors are delighted that the business is passing to its management team and Ardenton who, they are confident will uphold the values and tradition of excellence for which the company is synonymous.”
Corbetts the Galvanizers is the UK’s largest independent hot dip galvanizer and serves UK and international manufacturing businesses with a strong market position.
Its most recent published accounts, for the year to March 2016, show pre-tax profits of £1.3m on revenues of £10.3m.
Ardenton says it invests in businesses “with no intention to divest the businesses it acquires”. It plans to invest £100m globally this year and to begin fundraising in the UK.
Michael Bradbury, a UK director of Ardenton, said: “Corbetts is a great business with an impressive management team. We set out with a sector-neutral approach and a focus on robust and growing businesses supplying products or services that will be as relevant in 20 years’ time as they are today. Corbetts ticked every box for us.”
Senior debt and working capital facilities were provided by the Midlands Corporate and Structured Finance team of Yorkshire Bank led by Ian Howey and Ian Mansell.
Financial due diligence was carried out by BDO Manchester and Addleshaw Goddard provided legal advice to Ardenton.
The vendors were advised by KBS Corporate Finance with legal advice provided by KBL.
