Gresham snaps up IESA in £30m deal
WARRINGTON-based distributor IESA has been sold to private equity house Gresham in a deal understood to be worth around £30m.
IESA, which evolved from the family-owned Caldwells Group, outsources the management of stores and procurement for major blue-chip companies.
It buys and monitors the amount of non-essential stock including cleaning products and general maintenance kit held by clients in stores, with a view to reducing overheads. It also operates around around 160 stores on clients’ premises.
The company has more than 230 staff and is run by chief executive Ben Caldwell and has enjoyed rapid growth in recent years.
Turnover has climbed from from £35.5m in 2008 to £46.4m last year, on which it made a £727,392 pre-tax profit. Sales are understood to have have grown to more than £70m this year.
Gresham plans to roll out IESA both domestically and into international markets. Mark Blower and Andy Marsh from the firm’s Manchester office will be joining IESA’s board as part of the deal.
Mark Blower of Gresham hailed IESA as a “fantastic opportunity” and added: “Its market-leading software differentiates it from its competitors and is unrivalled in the UK.”
“We are also happy to say that following the investment IESA will be expanding and moving to new offices and increasing staff numbers.”
The management team at IESA includes chief operating officer Jon Davidson, commercial director Andrew Perry, operations director Simon Hilton, FD Charles Bithell and chairman Bill Wilson.
Jon Davidson, said: “At the heart of our business is a unique web-based, transaction-driven system, which sets our business apart from the rest of the market.
“We’re looking forward to working with Gresham to maintain our robust market position and take advantage of future opportunities, continue our growth strategy and take the company international.”
The Manchester office of KPMG corporate finance (Alex Hartley and Jonathan Boyers) advised on the off-market deal, with James Kerrigan, a corporate partner at DLA Piper providing legal advice. Dow Schofield Watts carried out due diligence.
Gresham was advised by law firm Addleshaw Goddard. Its team was led by Yunus Seedat and was supported by Garry Elliott and Kat Waugh in Leeds and Kieran Toal and Nicola Brookes in Manchester. In addition, Alex Dumphy in Leeds led the banking negotiations with Investec.
Corporate partner Mr Seedat said: “IESA is a market leader with a unique proposition that is unrivalled in the UK – offering a great investment opportunity. With key support from Gresham, the business will be able to increase market share, progress an ambitious growth strategy and expand internationally.”
