£20m industrial group snapped up by Swedish business
ROTHERHAM-BASED Acorn Industrial Services Group has been bought by a £6bn Swedish multi-national.
Johnson AB has bought the £20m-turnover business which employs 100 people.
It was founded in 1983 and now has sales branches throughout the UK, with an ecommerce platform for European customers.
Axel Johnson AB employs more than 20,000 people. Acorn will become part on the international business, supplying products and services to European customers.
Acorn directors Martin Povey and Des Spillings originally acquired the business in a management buy out in 2006. They will continue in a management role at the business.
Managing Director Des Spillings commented: “Acorn has grown tremendously over the last 10 years and to continue our growth, and more importantly, to grow at a quicker pace, we needed to align ourselves with a business that could bring with it skills and resources that we do not have currently. With the European market place changing and consolidating quicker than at any time in the past 20 years, we had to find the right partner for the future and we believe Axel Johnson International to be this partner.”
Don Gray, partner at BHP Corporate Finance, the firm which advised on the deal commented: “We are delighted to have had the opportunity to advise on this transaction.
“Since acquiring Acorn in 2006, Des and Martin have grown the business three-fold through a combination of organic development and carefully targeted acquisitions. The successful sale to Axel Johnson is a testimony to their strategy of building a leading independent distributor in specialist technical markets and reflects the continued interest we are seeing from overseas buyers in UK companies.”
Legal advice to Acorn’s shareholders was provided by hlw Keeble Hawson led by corporate partner, Nick Goulding, who commented: “We acted for Martin and Des on their MBO in 2006 and have since represented Acorn Industrial Services Group through a series of strategic acquisitions.
“This is a milestone development and paves the way for this vibrant and successful business to accelerate its growth and vision with a first-class management team.”
