MBO at Wigan power solutions firm keeps it in the family

The corporate finance team at chartered accountancy, business advisory and wealth management group PM+M has acted on behalf of an MBO team which has just acquired Wigan-based PE Systems for an undisclosed sum.

PE Systems was established by Mike and June Smith in 1987.

The business has since grown to become a key provider of secure power protection solutions for clients such as UK National Grid, SSE, UK Power Networks and GE.

Its range of products includes standby generators, AC/DC uninterruptible power supplies, hybrid energy solutions, energy storage and battery monitoring.

To complement its portfolio of products, PE Systems also offers comprehensive installation, commissioning, service and maintenance options to ensure clients have power when they need it.

The new MBO team consists of Nicola Jones (managing director) who is also Mike and June Smith’s daughter, Anouska Gee (financial director), Julie Nuttall (production director) and Mark Wilson (sales director).

PM+M advised on funding, structuring of the deal, post deal remuneration planning, as well as on the key financial and tax related terms in the sales and purchase agreement, the shareholders’ agreement, the articles of association and the loan agreement.

Other advisers involved in the deal included Forbes, Brabners, and Clydesdale Bank.

Jim Akrill, corporate finance partner at PM+M, said: “Often, the best exit solution for businesses like PE Systems is an MBO, where there is a solid management team taking over, along with vendors who are willing to be part of the deal through an ongoing stake in the company for a few years.

“This is a solution that works for all concerned and we wish the new owners every success in the future.”

Jenny Burke, associate solicitor at Forbes, advised the buyers over the deal.

She said: “PE Systems has earned a fantastic reputation over the years and we are delighted to have been able to help the new owners to secure a deal which provides continuity and a solid base from which to take the business forward. We wish them every success in the future.”

Nicola Jones added: “The entire MBO team is dedicated to the long-term future of PE Systems so finalising the deal is fantastic for us and the business.

“Our focus is now on continuing to build on the solid foundations laid for more than 30 years.”