West Midlands corporate deals review in association with Clearwater International
Clearwater International partner Gareth Iley looks at the continuing influx of foreign investment.
The past month has been seen major changes in the provision of local services in the Midlands.
The Department of Transport announced that London Midland was losing its contract to run the West Midlands rail franchise.
Passengers must now hope that the new operator West Midlands Trains, a joint venture between Dutch firm Abellio and a Japanese partner will end the delays that blighted its predecessor’s services.
The period has also seen a welcome breakthrough in the seven-week Birmingham bin strike, as members of trade union Unite agreed to suspend their industrial action.
Whilst the blazing sunshine has failed to visit the Midlands once again this August, M&A activity has certainly turned up the heat. There were 23 deals in the region during the past month, with three stand-out transactions.
Another vital service provider to the Midlands hit the headlines. Coventry-based Seven Trent Water announced the sale of its North American business to US investors PPC Enterprises and Alston Capital Partners. The £48m divestment formed part of its bold strategy to focus on its core UK market. The American business, as part of the sale, will launch a new brand and standalone website by 2018.
Road safety made the news when The Department for Transport recently announced that learner drivers would now be allowed on the motorway, on the condition they were in a dual controlled car with an approved driving instructor.
The announcement formed part of plans to improve road safety and cut fatalities. Telford-based TTC Group aims to aid this objective by providing road speed awareness along with a portfolio of driver training, compliance and education courses.
The business completed a management buyout in July supported by Palatine Private equity. TTC employs 123 staff and handles 330,000 clients a year. It has looked to diversify its product offering, introducing cycling training courses when it purchased Cycle Experience. Palatine has promised to back the business in future M&A efforts.
The final stand-out deal was Kidderminster-headquartered Brintons Carpets’ sale to Argand Partners. The carpet industry was once a leading light in West Midlands manufacturing. At its height, the industry in Kidderminster alone included 25 factories and 15,000 workers. Yet with the impact of globalisation and the rise in alternative flooring choices, it has undergone some difficult times.
However, more recently the future looks brighter, as carpet has come back into fashion, resulting in a successful turn-around under its previous private equity owner, The Carlyle Group. The business has provided luxury carpets for The White House, Buckingham Palace and the Kremlin. Brintons made the Sunday Times Profit Track 100, due to its impressive fast growing profits over three years and Argand hopes to continue its success.
