HgCapital drives away with CES UK

A CHESHIRE car parts distribution business founded by two friends who met at Liverpool University, has been snapped up by a private equity firm.

Chester-based CES UK has been acquired by HgCapital in a multi-million pound deal after founders Howard Warren and Charles Colton sold their stakes in the business.

The duo will remain directors in the business to support HgCapital in its growth strategy. Steve McCann will continue as managing director.

CES UK has turnover of £50m and supplies a full aftermarket range that includes exhausts and catalytic convertors. It employs more than 500 people at 18 branches across the North West, Midlands, North Wales and the Isle of Man.

Howard Warren, said: “The market has changed considerably in recent times and the time was right to structure a deal. There are ambitious plans in place for the business and we’re looking forward to working with the team.

“We started the process of gearing up for sale two years ago with our advisors and have had various approaches. HgCapital had lots of relevant experience and knowledge of the automotive sector and were the natural choice.”

Nigel Barratt, head of corporate finance at the Manchester office of accountancy firm HURST, advised on the sale. He said: “We’ve worked with Howard and Charles for eight years now and they’ve built up a fantastic business.

“The acquisition came at the right time for the business and the future looks bright for CES UK. It’s an exciting time for the automotive sector with lots of consolidation and deals being done. We’re expecting a busy 12 months as businesses act on opportunities in the marketplace.”

CES UK was founded in 1984 by Howard Warren and Charles Colton. The pair et at Liverpool University and whilst studying agreed to one day set up business together.

They stayed in touch and did so eight years later, forming CES UK, both having gained experience working in the automotive sector.

Christopher Dunn, corporate partner at Manchester law firm Gateley also advised on the deal. He said: “The acquisition of such a well-established and respected business is positive news for the sector and allows the business to reach its full potential.”

Moira O’Shaughnessy, partner at the Financial Planning Corporation in Southport also advised the founders.