2M founder buys out partner in £25m deal

THE chairman of chemicals group 2M  – parent company of Runcorn’s Banner Chemicals – has bought out his business partner in a £25m deal.

In a transaction funded by Investec Growth and Acquisition Finance, Mottie Kessler has bought out Ieuan Thomas, which whom he set up 2M in 2003 to buy a portfolio of chemical distribution companies.

2M Holdings bought Runcorn-based Banner Chemicals in 2004, followed by MP Storage in 2006 and Leeds company Surfachem in 2007. The group employs almost 200 staff and generates revenues of more than £100m.

Mr Thomas has now resigned as a director of 2M, which has its registered office in London

In a statement Mr Kessler, who is also Banner Chemicals’ chief executive, said he had concluded that 2M’s long term growth plans would benefit from his full ownership.

He said: ” I am now looking forward to continuing the work with the management and employees of Surfachem and Banner. We will continue to invest in the business, focusing on growth both organically and by acquisition to strengthen our position as a leading distributor in the chemicals sector.
 
“We discussed the transaction with a number of providers and found Investec to be the most personal and business minded of all.”

The Investec funding package included amortising and revolving debt.

Tristan Nagler of Investec commented:  “We are delighted to support Mottie Kessler on a transaction that maintains 2M’s future independence.

“We are highly supportive of his growth and acquisition plans for the group and look forward to a long association. This transaction is another example that Investec is increasingly viewed as the destination of choice for mid-market entrepreneurs.”

A corporate team from the Leeds and Manchester offices of Squire Sanders advised Mr Kessler on the deal.