Case Studies
Recent BCMS case studies
Please find below details of five recent business disposals that we have managed. Some details remain confidential at the request of our clients.
Nuclear knowledge attracts world leading acquirer
Significant increases in UK nuclear energy industry activity, prompted by a government announcement relating to future nuclear commitments, finally persuaded the directors of RM Consultants to capitalise on their business’s value.
After a steady stream of approaches from potential acquirers for a number of years the business suddenly saw approaches increase dramatically over a three month period. ‘We could see a great deal of change happening within our industry and the interest from outside parties in our business grew considerably. We realised this was an ideal time to sell our business and maximise its value’ explained Managing Director James Fitzpatrick.
The directors thoroughly researched the marketplace for potential M&A companies before deciding to enlist the specialist assistance of BCMS Corporate to help them sell their business
Once the sale process was under way the business generated considerable interest and in all 29 meetings were undertaken with potential acquirers, including all the major organisations involved in the nuclear power industry in the UK and internationally.
A range of offers were maximised using the BCMS Corporate competitive bidding process with the eventual sale price exceeding the shareholder/directors’ estimate for their business.
As with many privately owned businesses, the directors were also extremely concerned for the future welfare of the staff that had helped build and sustain the business. In view of this they chose to accept an offer which combined a competitive price with a close strategic fit.
James Fitzpatrick said ‘The offers were more than we initially expected and once past that point our decision was very much based on the future prospects for our staff and how they would be treated. In the end, we chose the second highest financial offer because we felt the overall offer from Areva provided the best option for the future of all our staff.’
Of BCMS Corporate he added: ‘I would recommend BCMS Corporate without hesitation. We were very happy, we are very pleased.’
François-Xavier Rouxel, Senior Vice President for Strategy, of acquirer AREVA, said: "The acquisition of RM Consultants demonstrates our ambition to play an active role in the UK’s nuclear renaissance. RM Consultants’ expertise will allow AREVA to offer solutions which are tailored to the needs of its British partners.
Cleaning specialist London Property Management in B.I.M.B.O.
A provider of contract cleaning, security and maintenance for retail and business properties has been acquired in a £10 million buy-in management buy-out.
London Property Maintenance was founded in 1978 and focuses on office, industrial, retail and specialist buildings in the Southeast, providing services nationwide. Its clients include shopping centres and office buildings. LPM also offers pest control, refuse collection and services covering areas such as janitorial supplies, windows, carpets, office equipment, kitchens, stone and exteriors.
The acquisition of LPM was backed by private equity firm Sovereign Capital Partners which also committed £10 million of equity to support LPM’s ‘buy and build’ strategy, which will develop the business through organic and acquisitive growth.
Marriott Harrison advised the management team. It was led by corporate partner Duncan Innes, assisted by Ben Devons and Dan Wicksteed. Marriott Harrison continues to act for LPM.
Innes said: “This was a traditional BIMBO transaction that involved equity, loan stock, employees, management and sales. The underlying challenge was to create a synergy between the two new management team members, the existing team member and the investors. This has evidently been achieved.
“All the parties were keen to complete the transaction and get on with running the business as quickly as possible and the transaction was successfully completed in just 18 days after the initial instruction.”
BCMS Corporate was adviser to the vendor, Chris Ryan, who led the transaction said: ‘The deal secured with Sovereign Capital represented a significant improvement on alternative offers from a number of related businesses which were already at advanced stages of negotiation.
“Once the deal was agreed a detailed due diligence process taking 12 months verified the quality and integrity of our client’s business and our representation of the business in our initial Information Memorandum. Despite the lengthy due diligence process we continued to reinforce the quality and value of our client’s business, ensuring that the deal was still completed at the agreed price.”
KeTech Group communicate their intentions
Product led communications group KeTech recently expanded their portfolio with the acquisition of Ditra Systems, specialists in voice based public information in the travel sector.
Ditra Systems, based in Reading, has been operating for over 30 years and are widely known and well respected in the UK rail industry. Specialising in the design and manufacture of public address systems for multiple railway station applications Ditra recognised the need to expand into the wider travel communications market.
Bob Ross - Managing Director of Ditra Systems, was very positive about the sale stating that ‘KeTech were very confident about taking the company forward and are able to provide a massive marketing potential for Ditra’.
Echoing this, John Kearney – KeTech Groups CEO said ‘We were looking to expand KeTech’s Transport Group and Ditra fitted the target profile perfectly. Ditra was a company which we already had an existing business relationship with. The discreet approach of BCMS allowed the Group Executive to consider the options without disrupting our existing business relationship”.
Sunita Meigh of BCMS Corporate advised the vendor and said ‘Due to the long term stability and success of Ditra we were able to generate a significant amount of interest from potential acquirers. Our facilitation of the sale process ensured the best possible deal for our client’.
Wernick Hire’s strategic growth strengthened with Scotia Kabins acquisition
Wernick Hire, a member of the Wernick Group of companies has strengthened its market leading position with the acquisition of modular and portable buildings supplier Scotia Kabins.
Established in 1968, Scotia is the dominant supplier in the north of Scotland, providing the delivery and installation of around 1000 units.
The total investment that Wernick Hire has made in both acquisitions and organic growth has topped £40 million in the previous 18 months and has made it one of the leading companies in its sector.
David Wernick, Chief Executive of the Wernick Group commented ‘The combination of Scotia Kabins’ local knowledge and client base combined with Wernick Hire’s management experience and financial strength is a formula for success. This is a good strategic addition to our trading position in Scotland and will give us the presence we have long felt we needed in the north.’
Gregor Munro, Managing Director of Scotia Kabins added ‘I am very pleased that this deal will further strengthen Scotia Kabins position through the addition of Wernick Hire’s considerable resources.’
BCMS Deal Leader Craig Hart added, ‘Due to the financial stability and growth of Scotia Kabins, we were able to generate a significant amount of interest from potential acquirers. Our facilitation of the process ensured the best possible deal and deal structure for our client. Scotia particularly favoured Wernick as they are a reputable company and straightforward in their business dealings, as is Scotia, and this helped to facilitate the process to a “win-win” scenario. I would like to thank Gregor Munro, MD of Scotia Kabins for choosing BCMS Corporate and wish him every success in his future business interests.’
Diploma strengthen AI-Envirosciences Group
The strategic acquisition of CBISS Ltd, an established environmental monitoring systems supplier, into the AI-Envirosciences Group, has enhanced the environmental monitoring solutions portfolio of Diploma Holdings plc.
CBISS have been established for over 15 years, designing, manufacturing and integrating gas monitoring, analyser sampling and software systems. Accredited to ISO9001, CBISS provide solutions in the air quality monitoring, continuous emission monitoring system, gas detection and worldwide sampling markets. With Service Centres in Merseyside, Hampshire and East Kilbride, all CBISS systems are supported by specialist engineers.
Hugh Ashburner of BCMS Corporate advised the vendor and said ‘We were involved from the outset, searching for the perfect strategic acquirer to enable the continued growth of CBISS. Our role included facilitating meetings and discussions with a variety of interested parties with the aim of striking the best deal possible to ensure the continued growth and development of the CBISS business.’
CBISS MD Peter McQue said ‘I was looking for a strategic acquirer who would facilitate the continuing growth of CBISS, allowing our excellent management team to access the resources necessary to do so. The BCMS Corporate process allowed us to understand what potential acquirers wanted and to meet a number of them. The result was we that we found an excellent company in Diploma plc.
RSK merges with Structural Soils to become the UK’s no.1
A merger with site investigation contractor Structural Soils has turned environmental consultancy group RSK into the largest and most technically proficient geotechnical service provider in the UK. The merger is the largest in the company’s history.
Since 1964, Structural Soils has grown to become one of the most respected site investigation contractors in the UK, working for blue chip clients such as Thames Water, the Highways Agency and Network Rail. In doing so the past 12 months has seen an impressive 33% growth for the company. Now part of RSK Group, the company will be known as ‘Structural Soils, an RSK Group company’ retaining its well-established brand identity.
Structural Soils Managing Director Alec Handcock said:
“This is the right move for us at the right time and will help us evolve as a business. RSK’s accreditations, in-house systems and vast range of environmental capabilities will be a tremendous addition to our own services. All our staff have been very positive about the merger and are continuing to work hard on expanding the business still further”
RSK Group managing director Dr Alan Ryder added:
“This is a major coup for us considering the amount of experience and expertise Structural Soils has. With business opportunities emerging in the brownfield sector to the extent that they are, RSK now finds itself in a very good position indeed.”
BCMS Corporate were Advisers to Structural Soils and, reflecting on this, Mr Handcock said ‘I attended one the BCMS’s seminars initially and was very impressed. Perhaps like many business owners I was unsure who would actually want to buy our business. I was not keen to sell to competitors as I believe we offer a better a service than them. The research carried out by BCMS Corporate generated a wide variety of potential acquirers, most of whom I would have never considered myself. Their whole process worked extremely well and without this I believe we have not have achieved not only a good sale price but also a merger with such a complimentary company as RSK Group. I would certainly recommend BCMS Corporate to anyone.’
