Begbies Traynor acquires machinery trader
Manchester-headquartered business recovery specialist Begbies Traynor Group has acquired Fyrebrand, which trades as CJM Asset Management, based in Scunthorpe in a deal worth more than £580,000
Its 11-strong team will become part of Begbies’ existing Eddisons property services division.
CJM was established in 2000, following a management buy-out completed by the current management team.
The business specialises in the sale of industrial plant and machinery assets through its online platform, physical auction centre and private treaty sales.
It services a growing national and international client base which includes large industrial clients together with private clients and local authorities.
CJM will be combined with the group’s existing Eddisons machinery and business asset disposal activities, operating as Eddisons CJM.
In the financial year ended November 30, 2017, CJM reported annual revenue of £1.2m and pre-tax profits of £0.1m. It had gross assets of £0.3m as at 30 November 2017.
The acquisition is for an initial consideration of £0.25m, to be satisfied by £0.1 m in cash from the group’s existing resources.
A additional contingent consideration of up to £0.3m will become payable subject to the achievement of stretching financial targets for the consolidated machinery and business asset disposal business.
Anthony Spencer, director at Eddisons, said: “The acquisition will enhance our machinery and business asset disposal expertise, complementing our existing operations. This is our third Eddisons acquisition since we joined the group as we continue to seek opportunities for further growth, both organically and by strategic acquisition.”
Begbies Traynor executive chairman Ric Traynor added: “The acquisition of CJM is in line with our strategy to develop our property services division, to increase both the scope of its service offering and geographical coverage.
“In particular, CJM’s client base is highly complementary with our existing machinery and business asset disposal activities, which are primarily focused on the sale of assets out of insolvencies.”
