Private equity firm acquires merchandising specialist in new deal
Warwickshire-based specialist private equity firm Elaghmore Partners has targeted the retail sector for its latest acquisition.
Elaghmore, based in Leamington Spa, has acquired Kesslers International, one of Europe’s leading designers and manufacturers of retail displays and merchandising for world famous brands and leading UK high street retailers.
It has purchased the business from Enact, which invested in Kesslers in February 2016. The terms of the deal have not been disclosed.
Founded in 1893, Kesslers creates point-of-purchase displays and merchandising solutions for brands and retailers. The business, which employs more than 200 people, operates from an engineering and manufacturing facility in Stratford, London.
The purchase is the second acquisition made by Elaghmore from its initial private equity fund, Elaghmore I (Fund 1) which closed at the end of 2016, raising £60m. The fund was oversubscribed and the investors are a mixture of US and European institutions.
Elaghmore said Fund 1 was focused on investments in UK-headquartered industrial businesses that offered opportunities for growth and value creation.
Led by David Manning, Andy Ducker, David Morley and Greg Koral, Elaghmore has completed a series of investments during the past decade, including Chaucer Foods.
The first acquisition through Fund 1 was Wisbech-based SB Components, a leading supplier of bespoke components and adaptations for commercial vehicles.
Mr Manning said: “Kesslers is an exciting business with a long history and strong client list. We are excited to be investing in helping the management team deliver the next phase of its growth plans which include expansion in Europe and breaking into new market sectors. We look forward to working with management to achieve their ambitious objectives.”
Chris Cormack, Investment Director at Enact, added: “Kesslers is a well-established business with a strong market position and brand. We are pleased to have been part of the company’s journey and wish the management team, along with their new owners, Elaghmore, all the best for the future.”
Elaghmore was advised by Mills and Reeve (Legal) and EY.
Enact was given legal advice by Gordons and tax advice by Tax Advisory Partnership.
