BDO boost M&A market activity
Accountancy and business advisory firm, BDO LLP, has advised on the sale of two fast-growing businesses - marking an increase in M&A activity in the Midlands market.
The Midlands team acted as M&A adviser to all the shareholders of B38 Group Holdings, with the team being led by Satvir Bungar, head of facilities sector M&A.
B38 Group - a nationwide provider of critical, compliance-led facilities management services, which has regional offices in Birmingham and Derby - has been sold to Leicester-headquartered Bellrock, the technology-enabled compliance and risk management company.
This is B38 's second facilities management transaction sale to Bellrock, having sold market-leading Profile Consultancy in 2017.
The company, which provides a diversified offering through a mix of hard and soft facilities management services, across the UK with a strong presence in Northern England and the Midlands, works with high-profile businesses in the food, retail and student accommodation markets.
Satvir Bungar (pictured) said: “B38 is an exciting and fast-growing privately-owned business, which is a real success story during the pandemic. This deal represents an excellent partnership with a company of Bellrock 's calibre, thanks to the potential for synergies across a range of service lines. Given B38 's strong market credentials, this represents an exciting deal in the FM sector. ”
The B38 BDO M&A team also included Matt Goodliffe and Gabriella Eeles.
The M&A team also acted for all shareholders of Prolectric Services - the UK market leader in off-grid solar energy solutions.
Providing revolutionary solar technology that allows customers to measure the reduction in CO2 emissions versus diesel product alternatives, the privately-owned company has been acquired by UK-listed plc, Hill & Smith Holdings - the international group providing sustainable infrastructure and safe transport solutions which is headquartered in the West Midlands.
The deal is worth an initial £12.5 million, which could rise up to £18.2 million based financial performance targets.
Prolectric has grown rapidly in recent years as a result of the ongoing transition from fossil fuels to zero-carbon technology and the need to reduce noise pollution, driven by government legislation and customer demands. High-profile projects include the Hinkley and Sellafield nuclear sites, as well as the NHS Nightingale Hospitals.
The Prolectric BDO M&A team also included Alan Chan.
According to Experian MarketIQ UK & Ireland League Tables, BDO was the most active adviser in 2020, taking the number one spot in the Year-To-Date M&A Financial Adviser rankings, and number one in the Midlands.
Bungar added: “The FM sector - both in the Midlands and the UK - is rich with innovative companies, such as B38, which are pushing the boundaries when it comes to service offering. Despite the economic backdrop, this makes them an extremely attractive proposition to larger corporates looking to expand their footprint in localised and global markets.
“The FM market, like many, has been compressed as a result of Covid-19, but it is pleasing to see how it has grown in prominence due to the essential frontline role it has played during the pandemic.
“As the economy starts to open up, we expect to see an increase in the number of trade and private equity deals being completed as buyer confidence returns. We anticipate this will gain significant traction as the UK follows the Government 's roadmap to recovery over the coming months. ”