News
Cavendish advises on the sale of Goodfellow Group
7 April 2008Cavendish Corporate Finance LLP is pleased to have advised on the sale of Goodfellow Group Limited, a specialist supplier of materials for research, development and specialist production requirements of science and industry, to a newly incorporated company, Goodfellow Holdings Limited (''Goodfellow''), for an undisclosed sum.
The sale of Goodfellow Group to Goodfellow Holdings was supported by the Royal Bank of Scotland Plc's (''RBS''), Corporate & Structured Finance and Total Capital Finance teams, led by Simon Sherliker and Investment Director, Jackie McDermott. The transaction allows the existing shareholders to remain in majority equity control but provides a realignment of share holdings amongst the management team alongside a cash out for shareholders.
[Raymond Fagan], a Partner at Cavendish, led the transaction and was supported by [John Dorée], head of the firm's Chemical Group. Fagan commented:
''The deal with RBS was concluded after a full marketing exercise which commenced last year following an approach from an international trade buyer. We received several offers from both trade and private equity houses but the transaction that best suited the individual requirements of the three vendor directors was an integrated finance package. This allowed a cash release alongside a significant roll over by existing shareholders, in new proportions, and gave the opportunity to a key employee, promoted to director, to invest in the new company.''
The transaction was completed prior to 5 April 2008 to take advantage of changes to capital gains tax taper relief.
The finance facility provided by RBS also allowed Goodfellow to make a synergistic acquisition immediately following completion of the deal.
The deal was introduced to Cavendish by Fabrizio Carpanini, partner and head of the corporate group at Olswang, the leading mid-market law firm who also acted for the shareholders on the sale and the banking terms. This is one of a number of introductions from leading law firms to Cavendish demonstrating the value of their strong relationships with such organisations across the UK.
As a vendor-only specialist, Cavendish is ideally placed to help entrepreneurs and business owners achieve their objectives. Cavendish was established in 1988 and since then has completed the sale of some 400 businesses. Cavendish is a member of M & A International, the world's leading corporate finance alliance.