Temperature and humidity control firm expands with strategic acquisition
Otley-based Penmann Climatic Systems, which provides climatic solutions for the food industry, has been acquired by Newsome Ltd.
Newsome was founded in 1973 and provides temperature and humidity control solutions advice, equipment and services to clients mainly in the plastics, food and beverage, chemical and medical industries.
Penmann Climatic offers cooling technology solutions to the food and drinks industries, working with some of the UK’s largest international brands.
It began trading in 1979 and has most recently been spearheaded by brothers John and Damian Kirwin.
John will remain employed by Penmann, with Damian continuing as a consultant, working with the buyer to expand the services offered to the Penmann Climatic blue chip client base.
Castle Square Corporate Finance and Shoosmiths advised the Kirwins on the sale to Elland-based Newsome.
John Kirwin said: “The deal will help myself and Damian realise our longer-term withdrawal from the business to spend more time with our families in the future, but with a reassurance that the company and team are in the extremely capable hands of Newsome and are safeguarded for the future.”
Richard Metcalfe, Group MD at Newsome, said: “We’re pleased to have made the strategic acquisition of Penmann Climatic, which provides Newsome with additional investment opportunities and opens up the opportunity for capital sales and service and rental support for Penmann Climatic customers.
“In making this acquisition, we have secured Penmann Climatic’s future for the next 50 plus years, and increased Newsome’s knowledge bank to further grow our group.”
Led by assistant manager Joseph Potts, South Yorkshire-based dealmakers Castle Square Corporate Finance provided expert corporate finance advice and project management services to manage the deal to completion.
Potts said: “I feel very privileged to have worked with John and Damian on this transaction and am pleased we have been able to help facilitate their longer-term exit plans from the business, having now handed it over to a great custodian in Newsome, who will drive the business forward.
“The deal presented different challenges and complexities, but I am pleased we have overcome them as a collective.
“Newsome’s investment in Penmann Climatic will further bolster its position as one of the largest providers of its kind in the UK.”
The Leeds office of Shoosmiths, led by partner James Foster and supported by Associate Amy Walton, provided legal advice.
Foster added: “It was our pleasure to have worked with John and Damian over the past few months to guide them through the sale of Penmann Climatic, navigating the complexities of the transaction to steer the deal to successful completion.
“The success of Penmann Climatic is a credit to the hard work of John and Damian over the years and we look forward to the next chapter of the business as part of the Newsome group.”
The brothers were also advised by Leeds-based chartered accountants Brown Butler, which provided accountancy and taxation advice.
Newsome was advised by the Leeds office of law firm Schofield Sweeney and business advisory service Watson Buckle Chartered Accountants.
