Management buy out of Hall & Kay
- Specialist Engineered Products
- Management buy out
- £21 million
Momentum advised the management team and Barclays Ventures in the Management buy out of Hall and Kay Fire Engineering Ltd (“Hall & Kay”). Hall & Kay has a turnover of over £40 million and is the second largest fire protection business in the UK. It installs and maintains sprinkler devices in a wide range of commercial properties.
Hall & Kay was purchased in a £21 million deal that saw the management team acquire a majority equity interest in the business. Barclays Ventures invested for a minority equity stake and debt was provided by Barclays Bank.
Some key deal features
- The management team achieved a 60% equity stake in this £21 million deal for a combined investment of less than £500,000.
- As part of the funding arranged by Momentum the management team investment was obtained secured only on the shares.
- The deal was completed in less than six weeks from granting of exclusivity.
- Momentum assisted with business planning, formulating detailed financial forecasts, deal negotiation as well as overall project co-ordination.
- A break fee was required to be paid to the vendors in order to secure exclusivity for this deal. That break fee was provided by Momentum – we are entrepreneurs too!
- Momentum’s role with Hall & Kay has continued with the provision of regular board input and advice.
- The partners of Momentum are investors in Hall and Kay at the invitation of the management team.
- “The Momentum team did an incredible job, our previous deal collapsed in August 2005 and Momentum persuaded the vendors to accept a new deal and project managed that deal to completion in under six weeks, I could not recommend Momentum highly enough.”
- Simon Quillish, Managing Director, Hall & Kay Fire Engineering Limited
Related links