Background
My association with Cavendish Corporate Finance started when I decided that it was time to sell Polaron plc (the business where I was CEO and largest shareholder). Cavendish were appointed following the strong recommendation of my then accountant and mentor Peter Leach at BDO. Following its successful completion, I became head of a business unit of Cooper Industries that was involved in Energy management in the lighting sector. The task was to build both organically and by acquisition a worldwide business that complemented Cooper's lighting business. Being involved with a Fortune 500 company was a huge learning experience both in terms of the way a large multinational business operated but also to understand how large businesses manage their M&A process. This experience has proved invaluable with several of the transactions I have since led.
Having been impressed with the team that sold Cavendish, once I had left Cooper it was natural to approach them to transition into advisory work and I persuaded the then owners of the business Howard Leigh and Hugo Haddon-Grant to appoint me as a technology partner. Shortly after joining I led the buyout of Hugo's shareholding in Cavendish and following his retirement assumed day to day running of the business, initially as COO and then as Managing Partner. Despite having a full time role supporting partners, deal teams and support staff I was keen to make sure I also originated and led transactions.
The deal tombstones below relate to many of the transactions I led (several were requested to remain confidential) whilst at Cavendish or at SilverCloud Capital working in association with Cavendish. By clicking on a tombstone, a short summary of the deal will appear.
My last transaction as a partner at Cavendish was to identify a buyer for the firm itself, structure the transaction and to then lead the negotiations internally and externally. The result was the simultaneous sale of our business and the admission to AIM of its buyer finnCap Group plc.
Lightech
Cavendish Corporate Finance LLP, is pleased to announce the sale of Lightech, a privately held, advanced lighting power supplies company based near Tel Aviv, Israel, to GE Lighting for an undisclosed amount.
Lightech, which was established in 1996 and currently employs 40 staff, specialises in providing LED electronic drivers and halogen transformers to the lighting industry, with operations across the globe. Lightech joins GE Lighting, a business that employs nearly 17,000 employees around the world, engaged in all aspects of lighting technology, research and development, engineering, manufacturing, sales and distribution to build on its strength in power supply design and system optimization. The addition of engineering capability enables GE to respond to the market need for complete systems and higher-performance drivers and control. In addition to building its own systems, GE will build on Lightech’s market presence with OEMs.
Joe Stelzer, Chief Operating Officer and Technology Partner at Cavendish Corporate Finance, who acted as adviser to Lightech on the sale to GE Lighting said:
“The deal demonstrates an active market for businesses with great technology that are capable of leveraged scale in the hands of a global player”
Lightech’s CEO Zvi Schreiber, an entrepreneur who has founded several high-technology companies over his career, said:
“Cavendish introduced us to GE and managed the negotiation and co-ordinated the diligence . Their involvement was instrumental to the deal being successful."
Red Box Recorders
Cavendish Corporate Finance is pleased to announce the sale of voice recording specialist Red Box Recorders to ISIS Equity Partners. Red Box Recorders is one of the world’s fastest growing voice recording companies, operating in the global $2bn voice recording market. Based in Nottingham and with offices in the US and Asia, the company provides compliance based call recording services across a range of sectors, including financial services and emergency services. It’s voice recording systems, marketed under the name “Quantify” are simple and easy to install, and incorporate smart, reliable technologies using a frame based recording engine which allows for multiple telephony inputs into a single server.
Joe Stelzer, who led the transaction for Cavendish commented:
“The voice recording sector is expanding fast driven by increasing compliance and regulatory demands and this deal will help ensure that Red Box Recorders can take full advantage of the growth opportunities that the market offers. The company’s technology is world-leading with some unique features, which should help underpin its increasingly international expansion. ISIS Equity Partners’ experience in the TMT sector and its knowledge and expertise in some of Red Box’s target sectors, such as Healthcare and Financial Services, makes them an ideal investor to help take the Company forward and enhance its competitive position in the market.”
Ian Worthington, founder of Red Box Recorders, commented:
“I would just like to say thank you very much for all your efforts to get this deal over the finishing line. It certainly had some sticky moments along the way, not least of which the day before signing. You did say it would be a roller-coaster ride and it certainly was! We are delighted with the result both personally and for the company and the support from Joe, Anya and the Cavendish team during the process was invaluable."
Gloucester Rugby Club
Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A firm, has advised on the sale of the Walkinshaw family’s stake in Gloucester Rugby Ltd to Vice-Chairman Martin St Quinton, who is named as new owner and Chairman of the celebrated club. Gloucester Rugby is today delighted to confirm that Martin St Quinton is the new 100% owner of the club with immediate effect.
The announcement, which comes with the club still in the hunt for a top six finish in the Aviva Premiership and in the quarter-finals in its defence of the European Rugby Challenge Cup, brings to an end a period of uncertainty. The news that Mr St Quinton, previously the club’s Vice-Chairman, has increased his shareholding to assume overall control of the club, will ensure welcome continuity in terms of the management of the club.
Mr St Quinton, who first acquired a 25% share in the club in October 2008 before subsequently increasing his shareholding, has purchased all the shares held by the Walkinshaw family and now has sole ownership of the club. The announcement follows the news in 2015 that the Kingsholm based club was seeking additional investment.
A successful businessman in the fields of office equipment and mobile communications, Mr St Quinton has served as Vice-Chairman of Gloucester Rugby since 2008 but will now assume the role of Chairman. In addition to his involvement with the club, Mr St Quinton was Chairman of the Fundraising Group that raised £50m for Cheltenham Racecourse’s recent redevelopment.
Speaking today at Kingsholm, Mr St Quinton commented
“I think it’s fair to say that the club wouldn’t be where it is today were it not for the involvement of the Walkinshaw family, firstly Tom who took over the club back in 1997 and also Ryan who took over from his father in late 2010. Were it not for their commitment, vision, business acumen and, of course, their love of rugby, then the Gloucester Rugby story may have taken a completely different turn. On behalf of everyone connected with the club, I’d like to extend my thanks to the whole Walkinshaw family for their contribution. I now believe that we are on the verge of an exciting new era for the club. Gloucester Rugby is a club that is moving in the right direction. We are in the privileged position of owning our own ground, have magnificent training facilities, our coaching set up and playing squad are both first class and we have the best supporters in the country."
Datong
Cavendish Corporate Finance is pleased to announce that it has successfully advised on the £7.3 million public to private sale of spyware and intelligence solutions leader Datong plc to Seven Technologies Holdings, an engineering business specialising in the manufacture of communication applications for operation in inhospitable environments.
The deal creates a £20 million annual turnover company, which will be one of the strongest independent players in the sector, with an enhanced capability to develop next-generation solutions for its increasingly global client base.
Datong has for over 30 years specialised in providing a range of covert surveillance, tracking and location systems to defence, security and law enforcement agencies worldwide and its robust family of products and systems are designed to provide reliable, uncompromising intelligence in the most challenging operational environments.
The type, size, technology, methods and intensity of both terrorist and crime organisations, their activities and arenas, are constantly shifting and posing new threats. Datong’s products and solutions help police and security agencies to gather early intelligence so that they can identify and anticipate threats and illegal activity and act to thwart them.
Headquartered in Leeds, Datong also has offices in the US and Malaysia and a range of security clients spanning over 30 countries, which the company helps ensure maintain a technology advantage over their increasingly sophisticated and determined adversaries.
Seven Technologies Holdings is the parent company of Northern Ireland-based Seven Technologies Limited (STL), which has been trading since 2005. Last year YFM Equity Partners, a specialist SME fund manager, paid £6.6 million to take a stake in Seven to help SLT’s growth and development.
Both sets of management believe that the two businesses are an excellent fit and that there is a strong commercial and cultural affinity between Datong and Seven, in terms of their strategies, products and service offerings. Combining the two businesses creates a larger and stronger group within the specialist intelligence technology sector, which will benefit from additional scale and a wider customer base. It will also enable the enlarged company to tender for larger projects and cross-sell products from each group into the other’s markets as well as providing a stronger platform for further international expansion.
The deal was led by Cavendish partner Joe Stelzer and director John Farrugia, with support on Takeover Panel and public company matters by Cavendish partner Jonathan Buxton.
West One Loan
Cavendish is pleased to announce the sale of West One Loan Limited (“West One”) to Enterprise Finance, an investee of ISIS Equity Partners.
West One is a facilitator of bridging loans funded by high net worth investors. West One has grown significantly since its incorporation in 2008, becoming one of the largest privately funded short-term lenders in the UK secured lending market, with over £100m of loans currently under management and having completed deals in excess of £350 million to date.
Enterprise Finance is the UK’s largest specialist distributor of secured loans, and also specialises in bridging finance and commercial mortgages. Its market share enables it to offer highly competitive loan solutions to intermediaries and their clients, and a strong flow of business for specialist lenders. In February 2014, ISIS Equity Partners made a significant minority investment in Enterprise to support its growth and will also make a follow-on investment to part fund the acquisition of West One.
As part of the transaction, Duncan Kreeger and Stephen Wasserman, two of the founders of WestOne will join the Enterprise team. The two businesses, which are based in Borehamwood, Hertfordshire, are to be integrated in the near future with both companies moving to a new, larger headquarters in the local area.
Danny Waters, CEO of Enterprise Finance said:
“We have known the West One Loans team for a long time. Over the past six years, we have watched the business grow from a concept to what it is today – an established, financially robust and proven bridging lender with over £100m of loans under management. We feel, through this acquisition, we can help West One Loans realise its considerable potential far sooner. Also, with Stephen and Duncan joining the board, we will be adding strength and depth to our own senior management team and I look forward to working with them to take the business forward. From now on, our strategy as a group will be focused on both organic and buy-to-build growth, with this the first of a number of planned acquisitions.”
Duncan Kreeger, one of the founders of West One, commented:
“The Cavendish team, led by Joe Stelzer, has provided invaluable advice in preparing our business for a sale process and assessing our options. This deal will give us more firepower and enable us to expand far more quickly. It’s fantastic news for our high net worth investors and broker partners alike."
Periproducts
Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A firm, has advised on the sale of Periproducts Limited, the oral care products specialist behind the UltraDEX brand to Venture Life Group Plc, the AIM-listed international consumer healthcare group addressing the self-care needs of the ageing population.
Established in 1993, Periproducts develops and distributes the UltraDEX Mouthwash and Toothpaste brands. UltraDEX sets itself apart as an award-winning premium oral care brand by virtue of its emphasis on research and strong ties to networks of dental professionals. In the UK, UltraDEX has achieved significant success and enjoys strong relationships with major retailers such as Boots, Tesco, Sainsbury, Superdrug and Waitrose.
The acquisition of Periproducts and integration of its premium range in the medicated mouthwash and toothpaste category will allow Venture Life to achieve its growth ambitions in the oral care market, both in the UK and internationally. Over the last 15 years, the UltraDEX brand has established a strong position in the UK pharmacy channel and will complement Venture Life’s existing oral care portfolio, while benefitting from Venture Life’s network of over 80 distribution partners. In particular, Venture Life’s track record in building a presence in over 40 countries with leading pharmaceutical and healthcare distribution partners will support the international expansion of UltraDEX into new, high-growth markets.
The UK oral care market is undergoing significant change despite its maturity. The sector benefits from a number of attractive growth drivers, including shifts in demography with people living longer, government organisations actively promoting self-care due to increasing constraints on public sector healthcare budgets, and lifestyle factors This shifting consumer behaviour coincides with stable growth and the market is forecast to grow to reach £1.2bn by 2019 (Euromonitor). Consumers are increasingly aware of the value of good dental hygiene and gravitate towards premium, science-based brands such as UltraDEX.
Cavendish Corporate Finance, which advised the shareholders of Periproducts on the sale, has a wealth of experience in the healthcare sector. Recent high profile transactions include advising on the sale of off-patent pharmaceuticals provider DB Ashbourne Ltd to Ethypharm, the sale of Polar Speed, which specialises in temperature-controlled deliveries to hospitals, to UPS, the sale of C.D.C. Complete tandzorg to G Square and the acquisition of Barbican Dental Care by BUPA.
Joe Stelzer, managing partner at Cavendish, which advised Periproducts on the transaction, said:
‘We are delighted to have assisted the shareholders of Periproducts in finding an ideal organisation and management team to drive the expansion of the UltraDEX product range. Periproducts is a first class operator in the market, recognised in the industry as an innovative and above-all research-led developer of premium products. With ambitious growth plans ahead, the deal with Venture Life stands to accelerate the company’s expansion both domestically and abroad."
Richard Bernholt, Managing Director at Periproducts said:
"I am very pleased to have found such a complementary match in Venture Life, a highly successful consumer healthcare group with a reputation for accelerating the growth of the brands it acquires. The resources and expertise of Venture Life will see Periproducts on a trajectory of rapid growth under the guidance of a proven management team, through enhanced marketing opportunities, new product development and, crucially, access to a substantial number of export markets. The Cavendish team were of great assistance throughout the sale process and in particular finding us the most fitting acquirer, helped by their strong networks in healthcare and their understanding of the oral care market."
Express Vending
Cavendish Corporate Finance has advised the shareholders of Express Vending Group Limited (Express Vending), a UK supplier of premium refreshment solutions, on its sale to Selecta Group (Selecta).
Express Vending is a privately-owned, fast-growing UK supplier of premium vending services. The business generated sales of more than GBP39.0 million in the twelve months ending July 2018. Founded in 1992, Express Vending is focused on London and the neighbouring counties. It is recognised for the high quality of its service and product offering, achieving strong customer retention.
The acquisition confirms Selecta’s position as a leading European provider of unattended self-service coffee and convenience food offerings, and further consolidates Selecta’s leading position in the UK.
Express Vending has a track record of double-digit, profitable sales growth and innovation. The company is at the forefront of micro market design in the UK and its Express HUB, with its open plan refreshment area, extensive product range and self-scan kiosks, will complement Selecta’s Foodie’s micro market offering. Selecta intends to build upon Express Vending’s competitive strengths to help it continue to grow.
Joe Stelzer, Managing Partner at Cavendish Corporate Finance, who advised the Express Vending shareholders, says:
“We are delighted to have achieved an outstanding result for Express Vending’s shareholders. Express Vending has established an enviable reputation for supplying premium refreshment solutions to corporate customers in the London and home county region, making extensive use of technology and innovation to drive a superior customer experience.”
Brian Donne, founder & CEO of Express Vending said:
“I am very grateful to Joe Stelzer and the Cavendish team for their efforts in managing this transaction. Express Vending will operate as a standalone business unit while continuing to develop new and innovative product offerings. The Cavendish team were hands-on and provided invaluable advice throughout the process and ultimately achieved a successful outcome for all shareholders.”
Star Payroll
Cavendish Corporate Finance is pleased to announce that it has advised the shareholders of Blayhall Payroll Ltd, the leading UK provider of payroll software that trades as Star Computers Limited (“Star”), on its sale to business-critical software and services company Iris Software (“Iris”).
Star was founded in 1973 by Jack Schumann and David Blechner and is globally recognised for its industry-leading software. It has built an enviable customer base including over 50% of the Top 100 accountancy firms, payroll bureaux, commercial entities, financial institutions, public sector and not-for-profit bodies and education organisations. Currently, Star supports the payroll for over 70,000 employers and 750,000 employees, primarily in the UK.
Iris is the UK’s market leading provider of business critical software and services to the UK accountancy and payroll sectors. Iris Software recently acquired Contact Group, a leading provider of parental engagement and truancy management software to UK schools, extending its product offering and ability to deliver efficiency across the UK.
The deal will better enable Star to serve the needs of a fast growing and dynamic UK market.
Joe Stelzer, Managing Partner at Cavendish Corporate Finance who led the transaction supported by Partner Nick Jones and Senior Executive Matthew Teys, commented:
“We are delighted to have produced an outstanding result for Blayhall’s shareholders. Star is a first class business that dominates its segment through delivering outstanding technology and customer service. The company was immediately attractive to Iris as a complement to their existing business operations.”
Bernard Skalla, CEO at Star said:
"We greatly enjoyed working with Cavendish who immediately understood our objectives for the sale of the business and provided us with sound advice throughout the whole process. In IRIS, Cavendish identified a firm that can develop Star's market-leading software and integrate it into its current, extensive offering to top UK accountancy firms, financial institutions, businesses and public sector bodies. We are confident that the business will flourish under its new ownership.
Star Practice Management
Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A firm, has advised the shareholders of Blayhall Professional Ltd (trading as Star), a global provider of Practice Management software solutions for accounting firms, to IRIS Software Group, one of the UK’s largest privately held software companies.
Star provides functionally rich and technically advanced Practice Management software for CPA firms. It uses a flexible modular approach, allowing clients to structure modules to accurately reflect their own workflows. The core system offers time and expenses, billing, scheduling, due dates/workflow and CRM. All modules are integrated into a single database solution.
Cavendish has extensive experience in the software & hardware technology sector, with recent deals including the sale of Star Payroll (a UK provider of payroll software) to IRIS Software Group, and the sale of a leading hardware distributor.
The Cavendish team was led by Joe Stelzer, a specialist in TMT and Industrials at Cavendish Corporate Finance, together with Mike Dinsdale, Associate Director.
Joe Stelzer commented:
“We are delighted to have advised on this transaction. IRIS is one of the UK’s largest privately held software companies; its backing and resource enables Star to develop and extend its reach to new markets and customers. Simultaneously, this acquisition forms a part of IRIS’s strategic plan, fueling international expansion in English speaking countries, particularly into the US.”
Bernard Skalla CEO at Star said:
“It was a great pleasure to work with the Cavendish team once again. Having successfully worked together on the sale of our Payroll business in 2018, Cavendish were our natural choice of advisors. The team demonstrated a deep understanding of the sector and provided sound and trusted advice throughout the process. We are confident the business will continue to flourish under IRIS Software Group’s ownership, further developing and delivering our market-leading software to new markets, and we look forward to working together during this next chapter.”