Disposal of Hall & Kay to UTC

Having successfully advised the management team of SFS Fire Services Limited (“Hall & Kay”) in their £18.5 million MBO from Staveley Industries in September 2005, Momentum has now advised the MBO team and their venture capital partner, Barclays Ventures, on the sale of the company to UTC Fire & Security of the USA.

Deal value

£50 million.

Client's view
Momentum provided an outstanding level of service to the management team and to the business and their help and advice did not stop when the deal was done. The Momentum partners, Tony and Rob, provided an invaluable sounding board throughout the period that we owned the business. They were always readily available to provide advice and assistance and this included regular attendance at board meetings. Over this period they developed a deep understanding of our business and our own personal aspirations. This certainly helped enormously when the shareholders reviewed the exit opportunities for the business. Momentum's help and advice along with their negotiating expertise proved invaluable during the exit process, and certainly helped to maximise the returns to all shareholders. We would unreservedly recommend Momentum to any management team considering an MBO or the sale of their business.
Simon Quillish, Managing Director
Overview

SFS Fire Services, which primarily operates under the Hall & Kay and Central Fire Protection brands, is the UK’s largest independent fixed fire protection business.  The company has excellent national coverage across the UK with sites in Birmingham, Bristol, Glasgow, Portsmouth, Manchester, Warrington, Ware and Windsor. UTC is the world’s leading provider of fire safety and security products.

Key features
  • Momentum’s extensive experience of running cross border sale processes involving US parties was key to delivering the best possible outcome for the shareholders.
  • The sale took place in less than 18 months after the original buy out.
  • Barclays Ventures has realised all of its shareholding in SFS Fire Services Limited, achieving a 3.5 times return on its original equity investment in less than 18 months and an IRR of over 140%.
  • The precise financial details were not disclosed, but the sale was priced at slightly less than the UK company’s annual sales.
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