Endless exits Acenta Steel
PRIVATE equity group Endless has sold its stake in Acenta Steel, the UK’s largest independent processor and distributor of bright steel bars.
The value of the deal was not disclosed.
Headquartered in Willenhall, West Midlands, and with an operation in Bolton, Acenta had sales of £82m across its six UK sites last year. It employs 343 staff.
Other existing management shareholders have bought out Endless which said the deal gave it a return of approximately six times its investment. It bought the business from its US owners in January 2011.
Chief executive Tarlok Singh and finance director Colin Mills have led the management buyout, together with support from long-term funding partner GE Commercial Finance.
Mr Singh said: “Having spent nearly 40 years working at Acenta Steel and its predecessors, I am absolutely delighted with the deal to take this prestigious business into private ownership. We have a remarkable group of people here and I am proud to say that our future is truly in our own hands.”
Darren Forshaw, partner at Endless, said: “Our investment in Acenta Steel just over two years ago took place when its US owners viewed the business as non-core and the company faced some difficult challenges due to the volatility in worldwide steel demand.
“We recognised the long term prospects for the business and also the strength of its market position and its people. Tarlok and Colin have led the business through an unprecedented period of success and it is now in a great position to achieve long term sustainable growth.”
The Endless investment was led by Darren Forshaw, James Woolley, Indra Valeinis and Kerry Swain. Endless was advised by Eversheds and the MBO team was advised by Gambit Corporate Finance, DWF and PWC.
Funding for the transaction was provided by GE Commercial Finance with legal support from Squires Sanders.
