Rigby Group expands print services division with £30m acquisition
WARWICKSHIRE-based SCC, part of the Rigby Group of companies, has strengthened its print services division with the acquisition of a Manchester firm in a deal thought to be worth around £30m.
M2 Digital, which provides managed print services to corporates, has been sold by its private equity owner ECI. The deal was supported by advice from professional services firms in both Birmingham and Manchester.
The deal will see M2 – one of only five nationwide independents in a rapidly growing UK sector – merge with SCC’s existing print services operation, enhancing its specialist capabilities in the sector and underlining its determination to increase market share through a blend of organic growth and acquisition.
The undisclosed investment, estimated by sources close to the deal to be worth around £30m, will see M2’s 180 skilled staff join the SCC brand with immediate effect although the business will remain an independent division.
SCC and Rigby Group were advised on the acquisition by Sarah Taylor and Ian Birch of PwC Birmingham, while legal advice was from Wragge and Co. Nick Boden, Rob Thomas and Peter Rimmer of PwC Manchester provided tax advice to ECI Partners, while Squire Sanders provided legal counsel.
James Rigby, SCC chief executive, said: “With ample capital resources available and revenues increasing across the business it is no secret that we are proactively seeking service-led acquisitions to supplement the company’s existing capabilities. I anticipate (the deal) will be the first of many as SCC continues its strategic evolution.
“Whilst SCC has invested several million pounds in its UK data centres, technical infrastructure and Cloud capabilities, M2 brings a best-of-breed reputation and an expanding operation to a managed service proposition that now embraces everything from hosting and virtualisation to print for public and private sector businesses.”
Founded in 1992, Old Trafford-based M2 is a prominent independent nationwide managed print services player in a sector growing at around 15% a year. The company serves multiple FTSE organisations.
John Taylor, M2 CEO, said: “We are delighted to be joining such a leading technology business. SCC represents a fantastic opportunity for M2 to achieve its next level of ambitious growth, with a business owner that understands the technology market and has the vision to see us become Europe’s largest MPS business.”
