£100m four-way merger completes

A new business which will see four motor firms merge to become one vehicle dismantling company headquartered in Doncaster has completed in a deal worth £100m.

Salvage and dismantling companies Doncaster-headquartered Motorhog, Cheshire-based Car Transplants, Gloucestershire-based FAB Recycling and Edinburgh-based DH Systems have completed their merger to create Synetiq, the UK’s largest motor dismantler in a deal valued at over £100m.

The business will employ over 450 people and anticipated year one turnover is £120m.

The merger deal is the result of 12 months of positive dialogue between the merger parties who have all experienced strong trading performance in the period to completion. The new business is market-leading, with significant capacity, scale, infrastructure, compliance and a uniquely integrated IT service. Synetiq has ambitious plans for further growth.

Tom Rumboll at TR Advisory provided advisory services to shareholders and transaction project management alongside KPMG who provided corporate finance (Christian Mayo, Stewart Cape, Ed Crocker and Amrit Bhogal), legal (Nick Roome, Edward Bartlett and Rachel Reeves) and tax advice (Mike Linter, Nathan Potton, and Nilesh Patel) to SYNETIQ on the transaction. Dow Schofield Watts (Rob McCarthy) provided Financial Due Diligence.

Christian Mayo, who led the deal team for KPMG, said: “UK salvage is highly fragmented and this merger creates a business of significant scale and national reach to challenge the largest players in the industry. Critically, the combined business now has considerable firepower to drive investment throughout the organisation, leveraging some really exciting technology and R&D capabilities, to push forward its growth strategy.”

Tom Rumboll at TR Advisory added: “It has been a real pleasure to help deliver this unique transaction that has met all shareholders aspirations. The creation of SYNETIQ has showcased a different approach to capturing and building value, and having worked with the shareholders closely for the last 12 months I have been struck by their commitment, trust, pragmatism and conviction throughout.

Synetiq Group Managing Director Richard Martin said: “The 1st March marks an exciting new chapter for all of us. In combining our individual businesses to create SYNETIQ, we have a business with a fantastic range of complementary skills, experience and capability, with significant physical and technological resources. SYNETIQ is in a strong position to provide the best possible service to our clients, customers and the industry.

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