22 corporate finance
RSM Tenon advises on the two ‘Deal of the Year’ awards
‘Despite a difficult market we are continuing to see merger and acquisition activity from our clients who are strategically developing their businesses, making opportunistic purchases, or are able to command good prices for quality businesses on disposal,’ says Peter Vandervelde, head of corporate finance at RSM Tenon
Below are two examples of recently completed deals, which illustrate the type of transactions we are currently seeing within the market place. We have started to see more deals with an international aspect, although the domestic market for consolidation plays, in the right sector, is strong.
The refinancing deal of Micheldever Tyres enabled them to continue their expansion strategy and acquire Tyreland. The refinancing deal was recently recognised as ‘Deal of the Year’ (over £25 million) at The Business Magazine Thames Valley and Solent Deals awards. This illustrates a typical ‘UK buy and build acquisition’.
The management buyout of Krispy Kreme UK was fundamental to the company’s ambitious growth plans. The significance of the deal was also recognised at The Business Magazine Thames Valley and Solent Deals awards, and was voted ‘Deal of the Year’ (under £25 million).
Micheldever Tyres acquires Tyreland
Micheldever Tyres, the Hampshire- based tyre retailer and wholesaler, acquired the Tyreland chain of 10 retail and wholesale tyre branches in Dorset, Hampshire and Wiltshire from the owner, Martyn James, for an undisclosed amount.
Following a management buy- out in 2006 Micheldever Tyres is owned by Graphite Capital and management. It is the country’s largest supplier of replacement tyres, selling some six million tyres a year and is a major consolidator in the UK tyre industry.
The RSM Tenon transaction services team, led by Nick Williams, corporate finance director, is the retained due diligence provider. It undertook financial and tax due diligence on Tyreland on behalf of Micheldever Tyres and its syndicate of banks, working closely with its retained legal advisers.
Nick Williams commented on
www.businessmag.co.uk
of corporate finance and Steve Jacob, associate director of tax, worked closely with Krispy Kreme and Alcuin to provide financial due diligence.
Commenting on the deal, Guerin said: "This is an excellent result for all concerned. Krispy Kreme UK is an ambitious business with a well recognised brand making it an attractive investment opportunity for Alcuin. It has been a real pleasure advising and we wish all parties every success together going forward."
Nick Williams
the deal: "We are very pleased to be able to support Micheldever Tyres with its consolidation strategy. Tyreland is an excellent business with a reputation for providing a high-quality service to its customers and will certainly complement Micheldever’s existing operations."
Commenting on another successfully completed transaction, Jon Cowles, Micheldever Group’s finance director, observed: "I have worked with Nick for many years and the Tyreland transaction is another example of how he and his team add value through their understanding of our industry and my wider strategic goals."
Management buyout of Krispy Kreme UK
Krispy Kreme UK, the leading retailer of premium quality doughnuts, secured the backing of private equity firm, Alcuin Capital Partners, in a management buyout valued at £25m that will support its ambitious growth plans. RSM Tenon provided the financial due diligence to Alcuin Capital Partners following on from an earlier due diligence exercise done by RSM Tenon 18 months previously for Santander, who remains a key lender to the business.
Over the next four years, the company is aiming to bring the Krispy Kreme experience to more people across the UK by focusing
Rebecca Guerin
on core business growth, which will take its total number of UK sites to 80 by 2015.
Krispy Kreme entered the UK market in October 2003 in London. It has since opened 45 stores across the UK, in key cities such as Manchester, Leeds, Birmingham and Bristol. The company also operates more than 350 cabinets, with retail partners including Tesco.
As part of the strategy to grow its UK footprint over the next four years, Krispy Kreme will continue to roll out and develop its hub and spoke distribution model. The regional model combines the destination experience of the company’s Hotlight stores, which showcase fresh doughnut production, with town centre coffee bars and cabinets. This approach ensures that fresh doughnuts are available to all of Krispy Kreme’s customers, no matter where they choose to shop.
Alcuin specialises in making development capital investments in profitable, growing companies. It has taken a majority stake in Krispy Kreme and appointed partner Mark Storey to the board as chairman to work alongside the existing joint managing directors, Richard Cheshire and Rob Hunt.
The corporate finance team at RSM Tenon, led by director of corporate finance Rebecca Guerin with Chris Rees, associate director
THE BUSINESS MAGAZINE – THAMES VALLEY – JUNE 2012
Following the completion of the deal Rob Hunt, joint managing director of Krispy Kreme UK sent his thanks to the RSM Tenon team. "It’s a difficult line to tread for you guys in understanding and helping us to keep our day-jobs going whilst also trying to do a very important job. Your team did it excellently. That said – it will be nice to get back to selling doughnuts!"
Working with RSM Tenon Corporate Finance
The team at RSM Tenon provide a total corporate finance solution for entrepreneurial business owners, ambitious management teams, corporates, investors and funders whether they are seeking to create or unlock shareholder value.
Our team regularly advises on transactions between £1m and £100m in value, and has expertise gained from advising on transactions across a wide spectrum of industry sectors, both nationally and internationally through the RSM global network.
Details:
Peter Vandervelde Head of corporate finance 023-8064-6508
peter.vandervelde@
rsmtenon.com
Nick Williams Corporate finance director 023-8064-6540
nick.williams@rsmtenon.com
Rebecca Guerin Corporate finance director 0118-9530369
rebecca.guerin@
rsmtenon.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48