Endless LLP is pleased to announce that it has supported the management buyout of H&L Garages Limited (“H&L”) from its parent, PD Ports Group Limited, part of quoted Australian company Babcock & Brown Infrastructure, for £8.5 million. Funding for the buyout was also provided by Euro Sales Finance (“ESF”) and The Royal Bank of Scotland (“RBS”). H&L operates six Mercedes-Benz dealerships across North Yorkshire, Humberside and Lincolnshire.
The transaction was led by Park Place Corporate Finance, who acted for the existing senior management team, Brett Whittingham, Managing Director, and Peter Worsnup, Financial Director, who have been with H&L since 2003. Both Brett and Peter have extensive industry experience, having worked for a number of the leading commercial vehicle dealers in the UK.
H&L has a proven track record and has demonstrated itself to be one of Mercedes-Benz leading commercial vehicle dealerships, with consistent year-on-year growth and profitability. In the year to March 2006, H&L achieved turnover of £48 million and operating profit of £1.2 million.
Phillip Tate, the Endless Director who led the transaction, commented: “This further demonstrates our support for strong regional buyout teams in businesses with market-leading positions. The MBO was completed in an accelerated timeframe, with a fresh approach required to structuring the deal, in an industry not normally associated with private equity transactions. We believe that H&L is ideally positioned to become the number one Mercedes-Benz commercial franchise and take advantage of the ambitious growth strategy of Mercedes-Benz.
Brett Whittingham said: “H&L Garages is a regional business that has built and enjoyed long-term relationships with a wide variety of transport operators within the Lincolnshire and North Yorkshire localities. I am keen to ensure that the H&L team continues to foster those business relationships that have been built on the back of consistent levels of good service.”
Peter Worsnup added: “Endless provided a unique and refreshing approach to funding the business and this was instrumental in completing the buyout in a short timeframe. Their recent success is no surprise when you witness this flexibility and innovation in action. Park Place Corporate Finance provided us with excellent support and advice throughout the process with a clear appreciation of the major transaction issues.”
James Stones of Park Place Corporate Finance said: “H&L, as a non-core asset of PD Ports, was ideally placed for a management buyout. For a number of reasons the transaction was not suitable for a traditional private equity structure, therefore we were pleased to introduce Endless, whose flexible approach ensured that the transaction could proceed. We are sure that with an empowered management team H&L will be able to go from strength to strength.”
RBS and ESF also provided funding for the transaction. Adam Simpson, Associate Director New Business, at ESF said: “H&L is a profitable and growing business which has been in operation for over 30 years and we are delighted to have the opportunity to back Brett Whittingham and Peter Worsnup in their plans to develop the business further. We worked closely with our colleagues at RBS to provide acquisition finance and working capital facilities to fund the MBO.”
The law firm Walker Morris acted for Endless, with Debbie Jackson advising. Management was advised by Park Place Corporate Finance (James Stones and Ben Peacock) and law firm Gordons (Andrew Jordan). Acquisition finance and working capital facilities were provided by RBS and ESF (Andrew Barraclough and Adam Simpson). Financial and commercial due diligence was undertaken by Ernst & Young LLP (Will Oxley and Peter Mummery). On the sell-side, PD Ports was advised by Jacksons (Tony Wentworth).
Garry Wilson, Endless Partner, added “Following our three recent disposals it is good to be on the acquisition trail again. This deal represents our 17th transaction, excluding our property deals, in our first nine months. We will break the 20 deals barrier pre-Christmas”.
Further information:
Endless LLP
Darren Forshaw +44 (0) 113 210 4000
Garry Wilson +44 (0) 113 210 4000
Philip Tate +44 (0) 113 210 4000
H&L Garages Limited
Brett Whittingham +44 (0) 1469 571 666
Peter Worsnup
Capital MS&L
Peter Curtain/Astrid Josephson +44 (0) 20 7307 5330
+44 (0) 7733 301 707
RBS and ESF
Caroline Pick
Media & Communications Manager +44 (0) 113 307 8426
Notes to editors:
Endless LLP
Endless is a private investment vehicle which supports UK-headquartered buyouts and turnarounds with equity and debt injections. Set up by former Andersen and Ernst & Young advisers Garry Wilson and Darren Forshaw in December 2005, it is headquartered in Leeds and also has an office in Manchester. The firm prides itself on its market-leading speed of decisions and investment process. Endless makes its own investment decisions, without any need for approval by a formal credit committee. It is supported by private investment and H&L is its 17th transaction in its first nine months. Further transactions will be announced before the end of 2006. Endless's portfolio companies have a combined turnover of over £500m and employ more than 5,000 people in the UK and abroad. Further information on Endless and some of its investments to date can be found at http://www.endlessllp.com.