West Midlands corporate deals review in association with Clearwater International
By Gareth Iley, partner at Clearwater International
As we move into autumn and the days get shorter and the temperature starts to fall, the Business Desk recorded 27 deals in September. This was a drop on August’s figure of 33 and a significant decrease from the record 42 registered in September of 2015.
Midland firms on a spending spree
Many Midlands firms made acquisitions in order to gain new resources, inherit capabilities and enter new markets. It suggests that despite the relatively uncertain climate post Brexit, businesses are still confident enough to continue investing.
Staffordshire-based childcare provider Busy Bees is the largest in the country. It employs and trains more than 7,700 staff and provides care for over 30,000 children. It acquired Dundee based The Teddy Bear Club, to expand its presence in Scotland, where it now owns 17 nurseries. Two of its founders Marg Randles and John Woodward were named EY’S Entrepreneurs of the Year for the Midlands.
Birmingham based BSHF also followed the trend when it acquired Nexus Healthcare. The deal aims to expand its occupational health division national, particularly strengthening its position in London and the South East. No redundancies are expected as a result of the acquisition and BSHF has made a commitment to further growth.
Furthermore Midlands based accountants Baldwins made two acquisitions within the month, as they looked to expand their presence in the North West. They acquired Shropshire based Trantor Lower and Gloucester firm Bartlett Kershaw. The business has also made a commitment to further acquisitions as it looks to boost its market share.
Another Midlands Manufacturer goes Norwegian
Previously for TheBusinessDesk.com, we focused on the acquisition of paint brush manufacturer LG Harris by Norwegian conglomerate Orkla. Yet another Norwegian firm invested in the Midlands, when Orlex acquired Tamworth firm Trident Environmental Services. Trident Environmental Services is now a £3.7m company with four regional offices.
The business gives Orlex market entry into new European territories along with new expertise in the water treatment market. It is really positive to see that Midland manufacturers still have significant appeal to large European acquirers.
Texting to success
One of the most interesting deals of the month was Stoke-based Packet Media’s sale to BGF backed GCI. Packet Media provides a sophisticated SaaS SMS platform. Many believe that as smartphone usage increases and adblockers and filters become increasingly sophisticated, SMS will displace traditional email and internet advertising as being the most effective. GCI acquired Packet for its strong strategic fit with its other services such as CRM database management and payment card security.
