mergers & acquisitions


Acquisition signals full speed ahead for Hendy Group


This summer has marked two major milestones for Southampton-based Hendy Group, as it first acquired the Lifestyle Motor Group and then was given the green light by planners for a £9 million expansion programme in Eastleigh


... the team played a key role in supporting the Hendy Group through succession planning negotiations as the baton was handed


down from the fourth generation


It’s not surprising that Hendy Group chief executive Paul Hendy says it has been a “transformational” time for the family-owned business, which already has a place in history as the UK’s first Ford dealership.


The Lifestyle deal delivers a combined turnover for both businesses of £600m and enables Hendy Group to expand its reach from its South Coast base throughout West Sussex, Surrey and Kent.


It brings the Renault, SEAT, Subaru, Dacia, Suzuki and Isuzu brands into the family, and boosts the number of employees to 1,000 enabling, says Hendy, new career prospects across the wider group to open up for staff, some of whom have already been promoted.


“This deal provided us with the opportunity to move into neighbouring territory, expand our present franchises and join new ones as well, so it’s a very exciting time,” said Hendy, who marks the fifth generation in the family-owned business.


‘It was great to work with a group of local advisers and funders, who were all fully


committed to getting the transaction successfully


completed with us.


BDO, HSBC and Irwin Mitchell all played key roles.’


“We now have a great portfolio and great staff – 50% of whom have been with us for more than 10 years – and this gives us a platform to continue to grow the business, which is something we very much intend to do.”


Providing support over the past two decades has been Southampton accountancy and business advisory firm BDO LLP. Led by Kim Hayward, Southampton business assurance partner, the team played a key role in supporting the Hendy Group through succession planning negotiations as the baton was handed down from the fourth generation.


This planning created a pathway for the recent deal, project managed by M&A director Helen O’Kane, where BDO provided lead advisory, tax and due diligence advice, working very closely with the Hendy team.


“When you are having family conversations at crunch times, it isn’t always easy and BDO facilitated the process for us, making sure we focused on what was best for the business,” continued Hendy.


The acquisition saw Hendy Group work with HSBC Southampton for the first time, a decision that


22 businessmag.co.uk


Hendy says was made because of the “passion, determination and shared vision” that was shown by Ian Johnson and his team.


As part of its role, HSBC provided a flexible finance package and the bank said it was “delighted” to have become Hendy Group’s bankers at such an exciting time in its history.


Also involved was law firm Irwin Mitchell, led by corporate partner Dean Drew, which has a long- standing relationship with the Hendy Group. Its cross-office lawyers worked hard together as a team and with the other advisers and funders, to ensure the deal went ahead against a “very challenging” timeline in the latter stages.


“It was great to work with a group of local advisers and funders, who were all fully committed to getting the transaction successfully completed with us, and who clearly understood the key commercial issues. BDO, HSBC and Irwin Mitchell all played key roles. This was very much a Southampton deal, and I look forward to working with the team again on future opportunities,” Hendy concluded.


He also praised the support of Graham Holland of Lambert Smith Hampton (Southampton office) for its property advice on the Lifestyle deal and help with the successful planning application in Eastleigh which was, he added, achieved thanks to the “vision” of Eastleigh Borough Council.


Having now received the go-ahead, work will begin soon on three new dealerships in Eastleigh, opposite Hendy Group’s existing facility, with a planned opening date of late 2017.


The Leigh Road showroom will focus solely on Ford products, making it the largest Ford store in Europe; while the new showrooms, which will employ 90 people, will host the Mazda, Kia and Honda dealerships.


Already listed in the top 10 privately-owned motor trade businesses in the UK and the top 25 companies overall, it’s clear that Hendy is continuing to set a very successful course for future generations to follow.


Paul Hendy


phendy@hendy-group.com www.hendy.co.uk


THE BUSINESS MAGAZINE – SOLENT & SOUTH COAST – SEPTEMBER 2016


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