Newsletter June 2012
SALE MARKS NEW ERA OF GROWTH
FOR PURITY SOFT DRINKS
A West Midlands based soft drinks manufacturer founded over 100 years
ago is looking confidently to the future following its sale to a private equity
firm.
Purity Soft Drinks in Wednesbury has been acquired by Langholm
Capital, the consumer sector mid-market private equity firm, as part of a
management buy-in transaction which sees Garry Nield appointed as the
new CEO.
The company was first established in 1892 when it began supplying soft
drinks by horse drawn dray to the licensed trade in and around the Black
Country. It has been run by the Cox family since 1944, producing a range
of fruit juices and soft drinks for retailers including its main Juice Burst
brand which has developed a range of 100% juices stocked extensively
throughout the UK. The business also operates the UK’s last remaining
returnable bottle soft drinks operation with products sold under the
Masons brand.
We provided lead advice to the Purity Soft Drinks’ family shareholders.
Following the deal Mike Cox will continue as production director, retaining
a shareholding in the business, with Tim Cox retiring as managing director
and his responsibilities being picked up by Garry Nield.
Ruth Murday, Hawkins Hatton,
Colin Rodrigues, corporate partner,
Hawkins Hatton,
Garry Nield, CEO,
Mike Cox, production director,
Mike Mann, former chairman
and Tim Cox.
Garry Nield has extensive experience in the wholesale sector having
previously worked as CEO of Red Mill Snacks. He has been working at Purity for the last four months
and together with Mike Cox will continue to drive Purity’s growth strategy backed by new investment from
Langholm.
Commenting on the transaction, Garry Nield said: “The family has successfully grown the business over
a number of years, but this deal comes at the right time for Purity as it will provide the investment and
impetus needed to further develop the company’s main brands and manufacturing capabilities.”
Mike Cox described the sale as the latest chapter in the Purity success
story. “I’m looking forward to working with the new owners to further
build on our progress over recent years. Like all deals there has to be
a willing buyer and a willing seller and this one works for all parties,”
he said.
Colin Rodrigues, our corporate partner, said: “Purity has developed
a strong proposition for its wholesale customers and consumers and
we were delighted to work with the Cox family to help bring about a
successful sale which marks a new era for the company,”
Langholm Capital is a private equity firm that invests in high growth
consumer businesses. The firm’s other consumer investments in the
UK include Tyrells Potato Crisps, The Bart Ingredient Co and Dorset
Cereals.
In This Issue
•Sale marks new era of growth
for Purity Soft Drinks
•Hawkins Hatton trade
deal is a real marvel
•Hawkins Hatton support
recruitment firm’s MBO
•Plain Sailing as Hawkins Hatton
sheer Nautic deal
•A decade of changes secure future
for 100 year old manufacturing firm
Contact us on: 01384 216840 • [email protected]
HAWKINS HATTON’S TRADE
DEAL IS A REAL MARVEL
Colin Rodrigues (left), corporate partner,
Hawkins Hatton and David Marvell (right),
managing director, Marvells.
Marvells Ltd, one of the UK’s leading garden, gift and home accessory
importers, is poised for further expansion after buying up a rival
company with the support of our firm.
Shrewsbury based Marvells has acquired the assets and goodwill
of Blue Moon Trading which provides a range of garden, home and
Christmas products from its operation in Torquay.
We provided lead advice on all the contracts including the business
purchase and compromise agreements.
The deal will see Marvells turnover increase by 50% and will enable
the company to offer a broader, complementary range of products to
its retail customer base. Marvels plan to retain the Blue Moon brand
for the foreseeable future.
David Marvell, Marvells’ managing director, said that Blue Moon’s
three main categories were a perfect fit for the company even though
the products themselves were quite different.
“The two companies products present a fantastic spread for our
customers who will benefit massively from the increased ranges and
services now on offer,” he added.
Colin Rodrigues, our corporate partner, said: “Marvells has been
trading for 35 years and by advising them on the asset purchase
of Blue Moon, including the stock and customer list, the expanded
business is well placed to take advantage of the synergy between
the two brands.”
HAWKINS HATTON SUPPORT
RECRUITMENT FIRM’S MBO
Financial recruitment specialist Greenwell Gleeson has undergone
a management buy-out with support from our firm.
Under the deal Rob Lawton, managing director of Greenwell
Gleeson based in Birmingham, completed the acquisition of the
business from its parent company the German DAX-listed Amadeus
FiRe Group.
Our corporate partner Colin Rodrigues worked closely with HSBC,
who funded the deal, and Karen Turner from chartered accountants
Price Pearson.
Rob Lawton said: “Our strong performance over recent years
can be attributed to our focus on retaining and developing an
experienced and knowledgeable recruitment team that on average
has ten years with the business”.
“We have successfully diversified the business model by partnering
with corporate clients and developing relationships in the venture
capital, private equity and banking communities.”
Following the deal Greenwell Gleeson is planning further UK and
international growth and has recruited two new consultants to
support the growing client base.
Rob Lawton (left), managing director,
Colin Rodrigues said the MBO was the latest corporate deal to be
Greenwell Gleeson and Colin Rodrigues (right),
corporate partner, Hawkins Hatton.
supported by our firm. “We are continuing to provide legal advice
across a range of transactions and our recent inclusion on the
HSBC legal panel has provided a further boost to our firm’s development,” he added.
PLAIN SAILING AS HAWKINS HATTON
STEER NAUTIC DEAL
Tamworth based Nautic Steels, one
of the world’s leading manufacturers
of pipe fittings and flanges for the
offshore industry, has been sold to
a Malaysian based corporation in a
deal advised by West Midlands law
firm Hawkins Hatton.
Founded in 1978 by director Bob
Andrews, Nautic Steels’ products
are extensively used for sea
water systems including process
cooling, fire water applications and
desalination plants. The company
has been sold to Malaysian
conglomerate Pantech Group
Holdings for an undisclosed sum.
Following the sale, majority
shareholder Bob Andrews will
remain in the business for a
short period, but now plans to
devote more time to his number
one interest outside of work –
supporting Tamworth FC where he
is club chairman.
Nautic employ around 70 people
at its manufacturing plant on the
Tame Valley Industrial Estate
which specialises in a wide range
of materials used in marine and
offshore hazardous environments
such as copper nickel, austenitic
stainless steels and nickel alloys.
For Pantech, the acquisition of a
European based business with a
strong brand will help strengthen
the company’s worldwide sales,
whilst complementing its own
piping product range which is
manufactured using mainly carbon
steels.
Colin Rodrigues (left), corporate partner, Hawkins Hatton,
Bob Andrews (centre), Nautic Steels and Ruth Murday (right), Hawkins Hatton.
Commenting on the deal, Mr Andrews said: “Pantech serves similar markets to Nautic making us an ideal fit
for their business as they look to further build international sales of pipes, fittings, flanges, valves and other
pipe related components. I received very good support from the team at Hawkins Hatton and am now looking
forward to devoting more time to Tamworth FC which has punched above its weight in the Conference league
over recent seasons.”
Colin Rodrigues, our corporate partner, said “As this was an international transaction it brought its own unique
challenges, but we were delighted to have advised Bob Andrews throughout the process and to bring about a
successful sale.”
Double A, the Mayfair based corporate finance boutique firm, worked closely with Nautic and our firm throughout
the transaction.
A DECADE OF CHANGE SECURES FUTURE
FOR 100 YEAR OLD MANUFACTURING FIRM
When Andy Blackwell took over at the helm of
his 100 year-old family manufacturing business
a decade ago he set about a radical change
programme that would secure the company’s longterm future.
Founded in 1912, Fisher Alvin was one of the last
iron melting operations in Birmingham, occupying a
20,000 sq. ft. factory on a three and a half acre site
the company owned in the city’s Sparkhill district.
But faced with a dwindling skilled workforce,
rocketing fuel costs and mounting health and safety
legislation in the iron melting sector, Andy and
his colleagues quickly realised that the company
needed to adapt to changing times following the
retirement of both his grand-father and father.
Sales of the company’s Alvin key clamp systems
and fittings were in decline and a massive overhaul
was needed to ensure survival, as Andy explained.
“My grandfather was well over 80 when he retired
and when I came in as a relatively young 30 yearold I brought new energy and quickly realised there
was a real opportunity to turn round an underperforming company. We have grown the business
every year in the last 10 years improving turnover
and profitability.”
One of the first hurdles Andy had to overcome
was solving the company’s complex shareholding
structure which included a family aunt with an
influential, 40% minority shareholding.
Colin Rodrigues, Hawkins Hatton,
Andy Blackwell, Fisher Alvin
“Thankfully at that stage, our bank introduced us to
Colin Rodrigues from Hawkins Hatton and he was
instrumental in helping us acquire the firm outright through a company buy-back of the shares,” explained
Andy. “I needed to gain total control in order to move the business forward and Colin was extremely supportive,
advising me on negotiations and how best to structure the deal. Arriving at the price was difficult, but we
couldn’t have done it without the advice I received.”
With the business now fully under his control, Andy was able to re-shape its operations by selling the
Birmingham site and investing in a 13,000 sq.ft. purpose- built distribution facility in Droitwich. With many
of the older skilled workforce retiring, all manufacturing was out-sourced to suppliers in China and India,
making the company more competitive and paving the way for a greater focus on sales and marketing.
“Selling the old site was long-winded as we had potential land contamination issues, as a result of having
a manufacturing facility there since 1912, but again Hawkins Hatton’s Commercial Property Department
helped us negotiate the complicated issues surrounding potential contamination to ensure that we had no
residual liability,” said Andy.
Today, Fisher Alvin’s range of products is sold in over 30 countries, making it a truly global company.
“It’s been a massive transformation, but we have benefitted from having a settled team, a strong and loyal
customer base and excellent suppliers from the Asian sub continent, many of whom have been working with
us for 10 years. You could say we’ve changed more in the last 10 years than we did in the previous 90 and
Hawkins Hatton has been with us every step of the way.”