Sale of property company to venture capital firm for £42.5m completes
The acquisition by venture capital firm Central Square Holdings Ltd (CSHL) of Greater Manchester-based integrated property company Styles&Wood (S&W) for £42.5m has completed after the shares were de-listed from the London Stock Exchange.
CSHL, based in Leeds, is a large, UK-based business with specialisms in the sourcing, manufacture and management of life-cycle solutions for furniture, fixtures and equipment, through its existing equity interest in Southerns Group.
Southerns Limited is a Leeds-based furniture, fittings and equipment specialist which has grown quickly after investment from Steve Parkin’s venture capital vehicle, CSHL (formerly Knaresborough Investments Limited).
KPMG supported CSHL on the combination of Styles & Wood and Southerns Group. The acquisition received shareholder approval in February.
CSHL held a 25% equity interest in Southerns. As part of the transaction, CSHL entered into a share purchase agreement to purchase the remaining 75% conditional on the S&W takeover completing.
S&W – based in Sale – will now join forces with Southerns, and both organisations have today become wholly owned by CSHL.
Tony Lenehan, chief executive of the new group, said: “Today officially opens a new chapter for S&W and Southerns Group. The combination of both businesses creates a truly unique offering within the property services market. We believe our new group will bring exciting times for everyone involved and benefits to our customers, employees, and partners.”
KPMG’s debt advisory team provided financing advice to CSHL and comprised of Nick Dodd, James Hatton, Meredith Casey and David Madoc-Jones. KPMG’s transaction services team, which provided due diligence on the deal, was led by John Moth, who was supported by Philippa Keasey and Chris Percy.
Nick Dodd, head of debt advisory at KPMG in the UK, said: “The funding provided for this transaction demonstrates the clear support from HSBC and Tosca Debt Capital for the future growth performance of the combined business in the property services sector. It also signals the strength of the Northern debt market and the ability of management teams in the region to access the scale and flexibility of debt products that can help them realise their commercial ambitions.”