Corporate fit-out specialist in £11m MBO
A MIDLAND interior contractor and joinery manufacturer is the subject of an £11m MBO, in a deal part advised out of Birmingham.
Maven Capital led the buy-out of Leicester-based EE Smith Contracts, which focuses on fitting out prime residential and commercial properties including government buildings, embassies, bars, clubs, hotels, restaurants, offices and homes/apartments.
EES, which employs around 150 people, was established in 1897 and has been owned by the Richardson family since 1947.
The deal, for which BDO in Birmingham provided Maven with financial due diligence, has allowed the current management team to acquire the business alongside Maven.
EES is projected to turn over £35m this year, buoyed by a growing commercial construction sector and recent hotel contract wins, as well as diversifying into the London super prime residential market which has benefitted from a steady flow of foreign capital.
Its in-house operations, controlled from a specialist 80,000 sq ft manufacturing facility, cover all aspects of planning, design and project management, alongside the provision of full joinery and metalwork services. The breadth of its service offering allows EES total project control.
EES also owns Clarendon Fabrications, a solid surface manufacturer operating in both domestic and commercial markets supplying a variety of kitchen, bathroom and commercial applications. The funding from Maven will allow the group to maintain its impressive growth and continue its geographical expansion, both in the UK and overseas; in particularly Germany and the Middle East.
The transaction was funded by Maven Investor Partners, a syndicate of institutional and high net worth investors, some of whom have been working in partnership with the Maven team since 2006.
Andrew Ferguson, partner at Maven, said: “The deal represents an excellent outcome for Maven Investor Partners who have invested in a truly market leading business.
“EE Smith Contracts has a strong pipeline of committed contracts and continues to lead the competitive field based on their reputation for the highest levels of product and dependability in project delivery. We are very pleased to see the existing management team taking a significant equity stake, with a clear strategy to drive the business forwards.”
Neil Bottrill, managing director at EE Smith, added: “These are exciting times for the management team and the business as a whole, and we are delighted to have the support of Maven Capital Partners in the coming years as we strive to continue growth and improvement in this unique business.”
On BDO’s involvement, Ferguson said: “We have worked with the BDO Transaction Services team on a number of deals and they continue to provide excellent advice, producing a high quality report which highlighted all key issues.”
