INTRODUCTION
We seek three types of Acquisitions on behalf of our Clients :
1.
Bolt Ons
:
for our Clients’ Investee businesses
1.
“Bolt On” Businesses
Electromechanical and Electronic Assembly
We seek electromechanical manufacturers (UK or Europe ) complementary to
the manufacture and
supply of time based energy control products :
·
Preference for companies in Energy Management, Recording and Management
; Automatic Heating, Lighting,
Process and Ventilation Controls ; Low Voltage Distribution and Circuit
Protection Equipment ;
Building/Energy Management Systems for Light Industrial and Commercial
markets
·
Minimum/Maximum
Turnover: £1M/£10M
·
Gross Margin : ideally 40%, targeting 50%; relatively low gross margin
will be considered
Environmental Control Equipment (e.g. Air Conditioning)
We seek niche manufacturers of environmental control equipment (UK or
Europe) :
·
e.g. : Heating Products Pumps/Ground, Source heat pumps, Calorex heating
swimming pools, Fan coil units,
Refrigeration, Air Conditioning, Heat recovery, Humidity control,
Cooling control & systems, Ventilation systems,
Ground source heat, Solar energy, Environmental control
·
Minimum/Maximum Turnover: no minimum /£75M
·
Gross Margin : ideally 30%+; relatively low gross margin will be
considered
HVAC Control Peripherals and Environmental Measurement Products Supplier
We seek manufacturers that
make and supply HVAC control peripherals and environmental products in
the electro-mechanical industry (UK or Europe) :
·
Sectors : Sensors/instrumentation/control equipment and associated
areas. The business should
produce end
market products rather than sub-components Minimum/Maximum Turnover :
+/- £1M / up to £25M
·
Gross Margin : ideally 40%+; relatively low gross margin will be
considered
·
Examples of Businesses and Product Lines (not exhaustive):
Air Flow Measurement and Control ; Air Quality and Gas Detection and
Control ; Air/Gas Pressure ; Detection and Control ; Water Flow
Measurement and Control ; Water Pressure Measurement and Control
; Access Control Applications ; Automatic Heat, Light, Process
and Ventilation Controls ;
Building Energy Management Systems ; Building Automation/Control
Peripherals ; Energy Measurement,
recording and Management ; Environmental Measurement and Control ; Fire
Control Systems ; Heating Control ; HVAC Control Equipment ; Lighting
Control ; Low Voltage Distribution and Circuit Protection ; Occupancy
Detection ; Process Control Equipment ; Radio Transmission and Remote
Control ; Relative Humidity Sensing and Control ; Security Systems ;
Smoke Detectors and Alarm
2. Sectoral
Acquisition Criteria
Manufacturing or Process Based Business Europe
Interested in all manufacturing or process based production companies :
·
Particular preference :
Chemicals, Automotive components, Engineering, Packaging, PVC or similar
·
Minimum/Maximum
Turnover: £10M/£200M ; higher turnover targets will be considered if no
formal auction process
·
Profitability : Preferably under performing – achieving under a
5% EBIT, return on sales (ROS) or loss making
·
Good asset backing
·
Preference is UK or Northern Europe but would consider rest of the world
Preference :
Germany, France, Austria, Denmark, Sweden, Holland, Belgium
Branded Consumer and Industrial products (e.g.: “Well Known” Brand)
·
Broad area of branded, premium quality products (not services) at top
end of market, with strong design element. International products ideal.
· Types of Businesses: Residential interiors “In and around the home”; Quality building materials – e.g. : tiles and stone, quality ladders, etc - ; Healthcare: service products - not services - ; Foods / speciality food – e.g. : health, nutritional
·
Minimum/Maximum
Turnover: £10M/£100M ; will look at smaller if attractive opportunity
·
Profitability : not important; Turnaround ok
·
Preference is UK only
Engineering and
Related Sectors
We seek a mechanical or electrical engineering business (UK or Europe )
selling its products directly to industry and typically
build to order rather than build to stock.
Probably relatively low volume, high Average Unit Price products
requiring significant engineering input and skill content.
Products would ideally be end market but would consider components for
major end products.
·
Sectors: Aerospace, defence, rail, mining, construction, mechanical
handling markets or Oil & Gas
·
Minimum/Maximum
Turnover: £10M/£100M ; will look as small as £5M if attractive
opportunity
·
Gross Margin : ideally 40% ; but will look as small as 35%+
·
Profitability : currently profitable or under-performing e.g. : looking
for break-even with turnaround profit-making potential
·
Preference with international presence
Chemical Manufacturer/Distributor
We seek Chemical related manufacturing, distribution, storage or service
operation including technical support
·
Sectors: Fine chemicals;
Speciality Chemical Manufacturing; “Commodity” Chemical Production;
Chemical Distribution (repacking of products etc); Storage
·
Manufacturing and trading worldwide
·
Ideally B2B sales
·
Minimum/Maximum
Turnover: £2M/£10M through to £200M ; will look out of these parameters
if attractive opportunity
·
Profitability : Not important – Profitable, under-performing or loss
making
·
Growth prospects from smallish base (T.O of £2M - £30M) -
Turnaround opportunity (T.O of £30M - £100M)
·
Prefer UK/Europe but will consider rest of the world
“People” Businesses
A “people” business (UK headquartered) with sound second-tier management in place and with growth or development opportunities
·
Sectors : Aerospace/Aviation, Defence Systems, Defence Engineering,
Public Sector Privatisations (PFIs), Engineering Consultants, Management
Consultants, Business Processes Outsourcing (BPO), Professional
Services, Support Services, Facilities Management
·
Minimum/Maximum
Turnover: £10M/£200M ; ideally circa £75M
·
Gross Margin : Either a high-margin, profitable company or
under-performing business but with a reasonable gross margin
·
Profitability : not important
Construction Industry
We seek a substantial business (UK-based
excluding Northern Ireland) with sound second-tier management in
place and
with growth or development opportunities :
·
Sectors : Construction; Building or Civil Engineering as Prime
Contractor (Not house building); Some sub-contracting areas would also
be of interest, examples would include: Piling, Mechanical and
Electrical, Demolition, Facilities Management
·
Minimum/Maximum
Turnover: £50M - but would
consider businesses down to £20M if profitable or had clear growth
potential or development opportunities
·
Profitability : Ideally making
at least £2M pre-tax profit ; a
turnaround or profit improvement opportunity would be of particular
interest provided the business had no large borrowings
3.
Business Suitable for Public Equity Fund Raising
One of our Clients is
particularly interested in businesses that may be suitable for public
equity fund raising either immediately or within the short-medium term
All sectors considered but particularly:
·
Resources (mining, oil & gas, related support services); Leisure
(hotels, pubs, online gaming); Life Sciences (Pharma);
Retail (High Street); Chemicals; Financial Services; IT (including
businesses with internet content); Services
·
Profitability : Ideally, businesses with £2M+ pre-tax profits
·
Preference is UK primarily but also US, Continental Europe, China,
Russia, S. America, S. Africa
* Detailed acquisition profiles on each of the above are available on
request
Mark Dunn: