GIL Investments acquires £30m industrial distributor

WEST Midlands private investment business, GIL Investments, has completed the acquisition of a £30m turnover industrial distributor from Saint-Gobain.

The Ashworth transaction represents the second addition to the GIL portfolio within the past nine months. Details of the transaction have not been disclosed.

Radcliffe-based Ashworth (formerly Oliver Ashworth) is one of the UK’s leading suppliers of pipes, valves, fittings and associated products to the industrial and mechanical services process industries. The business employs over 130 people and operates from a national network of six branches.

In July 2014 the GIL team led the buyout of Stanchem International, a global supplier of natural and plant-based formulations and ingredients to a wide variety of industrial, agricultural and consumer-focussed sectors. Stan Chem, which has annual sales of £22m and profits of around £2m, employs more than 100 people at three sites in Reading, Great Yarmouth and Kingscliffe.

Stratford-upon-Avon-based GIL’s portfolio now consists of 13 businesses and includes seven which have been acquired from large UK or overseas corporate owners.

Jonathon Grove, Investment Director at GIL who led the Ashworth transaction said: “Our strategy of acquiring non-core assets from large groups has proven successful in the past and we are enthusiastic about Ashworth’s future under an experienced and motivated management team.”

Les Litwinowicz, Chief Executive, GIL Investments said: “Ashworth and Stanchem are both unique and exciting opportunities in their own right, and in both cases strong management teams are in place which we believe will enable the businesses to grow over the long-term.

“GIL remains acquisitive and the team are working on several processes looking at profitable, long-term businesses where we believe we can add value. We are still proud to be privately funded and carry out our late founder David Grove’s investment philosophy of supporting good management teams with long-term equity investing.”

GIL, an associate of West Midlands industrial conglomerate Grove Industries, was supported in both transactions by Harrison Clark Rickerbys, which provided legal advice, Mazars, which provided financial due diligence, Business Strategy Group, which provided commercial due diligence and Harris Lamb, which provided property advice and due diligence.

Shawbrook Business Credit provided financial facilities to Ashworth.

Beechbrook Mezzanine Finance provided additional financing to Stanchem.
 

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