Following hot on the heels of the “busiest August in its ten-year history”, RGCF has been at it again, having completed four deals in two weeks in October.
In August RGCF advised on seven significant management buyouts (MBOs) and strategic trade acquisitions including the MBO of Komatsu Mining UK’s conveyor manufacturing operation in Sunderland to create SE-TEK Ltd , the MBO of technology staffing business Energize Recruitment and the acquisition by eQuality Solutions Group (eQS) of London-based Equality Works Group.
There are many factors at play driving deal activity including the significant amount of liquidity in the market, Covid seemingly galvanising decision making of one sort or another, and Brexit driving some disposals of non-core assets by overseas corporates. Covid certainly seems to have spurred the entrepreneurial drive of shareholders and management teams to pursue a range of transactions including MBOs and acquisitions whilst also giving sellers the opportunity to lock in current Capital Gains Tax rates with the spectre of potential increases.
In the last few weeks in October RGCF advised on four notable transactions across the Northeast and Yorkshire, as set out below.
1. Sale of epco Limited
RG Corporate Finance advised the shareholders of epco Limited (“epco”) on the disposal of the business to Nimbus backed Mega Group Trade Holding B.V. (Mega Group). Founded in 1994, epco is a leading provider of thermoplastic pipe systems to customers across the UK, servicing a range of commercial sectors.
Following the acquisition, epco’s Managing Director (founder and principal shareholder) Chris Knowles will continue to support the business as interim MD for a period of up to 12 months and the business will continue to operate from its Leeds HQ. Chris will work with Mega Group to ensure effective integration and continued growth.
2. Sale of Fostr Limited
RG Corporate Finance advised the shareholders of Newcastle-based Fostr Limited (“Fostr”) on the sale of the business to IDHL Group, backed by Bridgepoint Development Capital.
Established in 2009 by Ryan Foster, Fostr is a premier Shopify Plus e-commerce agency based in Newcastle and working with clients across the globe, in its core verticals of Luxury, Beauty, Fashion and Lifestyle.
Shareholders Ryan Foster, Managing Director, and Emma Robinson, Business Development Director, will remain with the business as employees following the sale, continuing to scale the business with the support and assistance of IDHL Group.
3.Acquisition by Latus Health
RG Corporate Finance advised Hull-based occupational health services specialist, Latus Health, on its acquisition of Reward Me Now (“RMN”), including Reward Me Now’s smartphone app to further strengthen its customer-focused approach.
Latus Health provides a full spectrum of occupational health services designed to protect businesses and promote a healthy workforce. The acquisition of RMN, which combines reward and recognition with health and wellbeing, complements its range of bespoke employee programmes designed to improve mental and physical health.
This acquisition is the first in Latus Health’s ambitious and ongoing “buy and build” strategy supported by RGCF.
4.Acquisition by eQS
RG Corporate Finance has advised e-Quality Solutions Group (“eQS”) on the acquisition of The Educational Guidance Service Limited (“EGS”), its 3rd acquisition in the last 10 months, as part of a major growth strategy, .
Halifax-based EGS works with children, young people and adults who are experiencing specific learning difficulties and social and/or emotional problems, delivering psychological assessments for students and staff within schools, colleges, universities, and the legal profession across the UK.
This acquisition represents a significant step for the Group in its ambitious ‘buy and build’ strategy and will help the group move closer to achieving its target of £30m turnover by 2023. The addition of EGS expands eQS’s existing disabilities services offering, opening channels into new markets, and creating greater scale.
The M&A market remains incredibly positive and fertile, and RGCF believes this trend will continue for some time to come. Despite an incredibly successful 10-year history its pipeline is significantly stronger than it has ever been, and the team are excited about a very busy end to 2021 and start to 2022.
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