Magnet attracts multimillion pound MBO
Magnet Expert, a Newark distributor of rare earth permanent magnets and magnetic assemblies has been acquired in a multi-million pound management buyout (MBO).
The company has been acquired from chairman Ian Asquith in a transaction advised on by Roy Farmer and Jenny Moore of Dains Corporate Finance and funded by HSBC.
Magnet Expert has been acquired by the existing management team consisting of managing director Matthew Ellis, operations director Stuart Mather, finance director Lindsey Melady and sales director David Gault with previous owner Ian Asquith retaining a “significant” minority stake and moving into the role of non-executive chairman.
Ellis said: “We are all excited about Magnet Expert’s future and are honoured to be able to take the company forward. The MBO has given us the best of both worlds, allowing us to look towards developing the company further while retaining the input of Ian, a leading expert in the magnetics industry.
Farmer added: “Magnet Expert is a great example of a business which prioritises service at its core which in turn promotes a tremendously positive reputation.
“Ian has built a fantastic management team who have been responsible for driving the company’s growth in recent years, with that growth set to continue under the their ownership.
“We set ourselves a challenging timetable to complete the transaction, and from a standing start we completed in just three months. This was a real team effort, and is testament to the hard work and focus of the management team, the vendor and all involved.”
Asquith added: “I am absolutely thrilled to have been able to pass on the company to the management team. I know they will continue to operate the business with principles on which I founded it – quality products and an outstanding service for which we are highly regarded. I am looking forward to seeing the company continue to grow under its new ownership.”
Transaction advice was provided by Roy Farmer and Jenny Moore of Dains Corporate Finance. Funding was provided by David Arthur and Paul Smith of HSBC Bank with financial due diligence provided by Mazars. The management team were advised by Martyn Brierley of Flint Bishop, David Kaplan of Nelsons Solicitors advised the vendors and Gateley advised HSBC.
