Corporate News Stories
Multipart Completes £20M Buyout
12/06/2008
Specialising in supplying spare parts and components to clients including LDV, Isuzu, Dennis Eagle, TVR and the Ministry of Defence, the business employs over 200 people and has annual sales of over £70 million.
This latest deal involving Multipart`s supply chain solutions and defence divisions completes Imperial Holdings` disposal of Multipart. Earlier in the year Imperial sold Multipart`s Fleetserve division to T123 Ltd, leaving Imperial Holdings to concentrate on its core activities.
Led by directors, Chris Gateley and Paul Roberts, the business will continue operating in its main sectors, but will also look to further explore opportunities in retail, manufacturing and utilities. The firm has recently signed a contract with Anglian Water using its new Msys IS capabilities.
The company will also build on the success of its award-wining IT system - Msys. This unique fully integrated application platform has been developed to facilitate the entire spare parts and component logistics lifecycle - including supplier management, order capture, delivery and customer billing.
Commenting on the deal, Chris Gateley, managing director at Multipart, said:
"The business has over the last few years invested significantly in its new distribution centre based in Chorley and improving its systems, particularly our account management processes. This has put the company in a strong position to not only move forward with confidence, but further improve the level of satisfaction amongst our customers.
"Multipart has a strong track record in the automotive and defence sector and a growing presence in utilities and we`re confident that this deal will provide a springboard to future success."
Tony Harper, head of corporate at Brabners Chaffe Street, and associate Claire Swarbrick provided legal support to the management team, who were also advised by Gary Houghton and James Wild within the corporate finance team at Baker Tilly in Manchester.
Tony Harper commented: "The company has a state of the art distribution facility in Chorley and is well placed to expand its activities. Completion of this deal in a short time frame shows that despite gloomy economic reports there is still an appetite to support strong growing businesses."
KBC Business Capital, the specialist asset-based lending division of Belgium banking Group KBC Bank NV which funds mid-sized businesses in the UK with funding requirements starting at £2 million, supported the deal by putting in place a £15 million asset based lending facility which included an innovative revolving commercial mortgage.
Mark Shackleton, regional director in the North West for KBC Business Capital, said:
"KBC is delighted to have backed Chris Gateley and Paul Roberts in a deal which has allowed the management to take control of the business and we are very confident that they will continue on their past success. KBC`s strong deal team approached worked excellently in partnership with all the other advisors and we wish the management well for the future."
Gary Houghton, corporate finance partner at Baker Tilly in Manchester, added:
"This transaction provides a wonderful opportunity for the existing management team to develop the business. Multipart has a strong heritage in the automotive sector and has already made headway in new sectors such as utilities and retail."
Multipart was established in 1993 when its management team bought the UK afterparts division from Leyland DAF after the truck manufacturer went into receivership. Multipart was acquired by Lex Services plc in 1994 to form Lex Multipart Limited (LML).
In 2006 IML was acquired by South African business, Imperial Holdings to form Imperial Multipart. The group consisted of Multipart Supply Chain Solutions, Multipart Defence and Multipart Fleetserve.
For further information contact Tony Harper at Brabners Chaffe Street on 0161 836 8800
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