Deal of the Month: Major acquisition creates £250m manufacturing group
A DEAL paving the way for the creation of a £250m Midlands-based manufacturing group is the choice for August’s Deal of the Month by TheBusinessDesk.com.
The deal, which involved the full spectrum of professional services, has seen leading Jaguar Land Rover supplier Sertec continue its expansion with the takeover of Birmingham-based WILD Group.
The deal creates a £250m turnover business with 10 manufacturing plants across the UK, Germany and Hungary.
Coleshill-based Sertec said the deal represented “a transformational opportunity” for the business, enhancing its product capabilities, customer portfolio and providing an international platform at the heart of the European automotive industry.
The terms of the deal have not been disclosed but both Lloyds Banking Group and the Business Growth Fund agreed to extend their investment into the business.
They have been supported by Santander, which made its first syndicated contribution into Sertec’s growth.
The Midlands deal team at PWC acted as both lead advisor on the acquisition and provided debt advisory support for the refinancing with Weightmans providing legal advice to Sertec. Quercus & Penningtons acted on behalf of AWC Industries (WILD).
A team from Gateley’s Birmingham office acted for both Lloyds Banking Group and Santander on the deal. The team was led by Banking partner Carol Betts, assisted by Alison O’Kelly, Banking trainee solicitor, Jonathan Horne, Banking paralegal and Chris Reed, Corporate partner.
An honorary mention must also go to the £35m management buy-out of Solihull software firm Wavenet.
The deal has seen Birmingham private equity firm Beech Tree take a majority stake in the business in a move that will create a war chest for future acquisitions.
Wavenet, which provides unified communications to SMEs and has more than 2,000 customers, was also supported by Royal Bank of Scotland.
Beech Tree was advised by Eversheds, Oakley Advisory, PwC and Diligent Consultancy. Other advisers on the deal included Orbis Corporate Finance, Higgs and Sons, Gateley and Pinsent Masons.
