Endless exit from Acenta Steel is our Deal of the Month
THE transaction which saw private equity firm Endless sell its stake in Willenhall-based Acenta Steel has been chosen as TheBusinessDesk.com’s Deal of the Month for March.
Other existing management shareholders bought out Endless in the deal for an undisclosed sum.
The transaction provides Endless with a return of approximately six times its investment in Acenta Steel, which it acquired from its former US owners in January 2011.
Acenta is the UK’s largest independent processor and distributor of bright steel bars century and this transaction represents the next phase of ownership for the steel firm which has 5,000 customers worldwide.
In 2012 Acenta Steel achieved turnover of £82m.
Tarlok Singh, CEO, and Colin Mills, CFO, have led the management buyout, together with support from long-term funding partner GE Commercial Finance.
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.”
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.”
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.
Explaining the thinking behind our Deal of the Month choice, TheBusinessDesk.com editor Andy Coyne said: “This is a cracking Midlands deal which is good news for everyone involved.
“Endless has seen a fantastic return on its investment while the management team at Acenta are now in a great position to take the company on to a different level, building on its recent successes.
“And the involvement of so many Midlands advisers and funders demonstrates yet again that this region can effectively be self-sufficient when it comes to dealmaking.”
