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Management buy-out Management buy-out
of Forum Products of CG Rees Group
This announcement appears as a matter of record only This announcement appears as a matter of record only
Funding provided by: Equity provided by:
Legal adviser to the management:
Reporting accountant to the management team:
Valuations to the funder provided by:
GE SUPPORTS FORUM PRODUCTS BUY-OUT METAL COMPANY FORGES AHEAD WITH MBO
An eight-strong senior required a full understanding of Jan Frayne has bought out privately owned companies
management team has bought the company’s trading structure. the CG Rees group of metals setting out viable succession
Forum Products, an ingredients “The business had several supplier companies of Gabalfa, plans, such as in the case of
supplier to the life sciences trading divisions and was being Cardiff, from founder and Rees. He added: “Working with
industry, from Genus purchased from the ultimate managing director Colin Rees, Finance Wales and the other
Pharmaceuticals. parent, a German quoted who is retiring from the partners, Jan Frayne was able to
The deal was led by Chris company that had in turn only business. The £1.3 million secure the MBO.”
Bloor, who becomes the firm’s recently acquired Forum from a deal, which will see the Advisers to Frayne were CODA
chief executive. Steve Godber large Japanese pharmaceutical company renamed Fromstock, Business Management, New
takes up the role of chairman company,” he added. “This has been supported with an Law and BPU Accountants.
with Niall Fleming as its involved extra due diligence and Assembly Investment Grant Finance Wales was advised
finance director. an understanding of the product and a £650,000 loan from by Broomfield & Alexander and
Management was backed by licensing agreements.” Finance Wales. Frayne will Go Industry.
GE Commercial Finance’s Bloor’s team was advised become owner and managing Go Industry’s DoveBid group
Business Finance unit, which by Warwickshire chartered director of Fromstock. acted as inventory valuers for
provided £3 million of accoutant and business adviser “Colin wanted to ensure that CG Rees. Neil Smith, ABL
invoice discounting. Murphy Salisbury, led by the company continued trading, senior manager at DoveBid,
Bloor said the deal provides partner Mark Bullock, who has and an MBO was an obvious commented: “Go Industry
his team with the headroom it worked with management on avenue,” commented Frayne, DoveBid has a specialist
needs to ensure the future previous transactions. who plans to extend the inventory valuation team,
success of the business. Bullock assisted with the business and create new jobs. who carried out an appraisal
GE’s funding was arranged by due diligence review as well Andrew Coles, investment of the steel stock in order that
regional director Guy Walsh, who as advising on tax and the executive at Finance Wales, said the lender can take a charge
said, “Although the funding was financial assistance rules on the deal demonstrated the on this asset as part of the
straightforward, the deal share acquisitions. ■ importance of established funding arrangement.” ■
Mergers & Acquisitions 59
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