Ansons Solicitors has advised the sellers of SG Technologies Group Limited on the sale of a 90 per cent stake in the business, in a deal involving an initial upfront payment of £10.8million together with an earnout based on future performance. As part of the Transaction the Management Team will remain involved in the group, including two who have retained a 10% interest.
The team at Ansons, which has offices in Cannock and Lichfield in Staffordshire and Sutton Coldfield and Dudley in the West Midlands, advised on the successful transaction, which sees Toronto stock exchange listed Neo Performance Materials Inc acquire the group.
Essex-based SG Technologies Group Limited produces high-performance magnets and magnetic assemblies for some of the world’s leading brands in consumer electronics, electric and hybrid vehicles, multi-fuel and medium-duty engines, hydrogen fuel cell vehicles, off-highway fuel systems and automotive systems.
Neil Jones, Joint Head of Corporate and Commercial at Ansons Solicitors, was assisted in advising the Management Team on the transaction by Jamie Gill, Cristine Schneider, Victoria Ramshaw, Matthew Easter and Jason Alcock.
Neil Jones said: “We were pleased to be able to draw upon our strong track record of advising manufacturing businesses across the UK on mergers and acquisitions in advising on this deal and ultimately securing an excellent outcome for the Management Team. What makes this deal extra special for us is that we advised them when they acquired the business, throughout their ownership and now on their exit and we have loved being on that journey with them.
“The Management Team was able to draw upon our expertise across our corporate, property, employment and private client teams during the course of the transaction which shows the strength in depth that we have across all our teams in handing complex multi-million pound transactions.”
Corporate Finance advice to the Management Team was provided by Midlands based Spencer Wright of SWBA and Management Team tax advice was provided by David Thomas-Walls and Tom Ainge at Coventry based Chartered Accountants and Tax Advisers Spencer Gardner Dickins (SGD).
Spencer Wright of SWBA said “knowing that the Company was in a market that was likely to become of growing interest to potential buyers I have been working with the Management Team to ensure they were ready as and when a suitable offer was received. It has been particularly rewarding therefore to see this work pay dividends and even more satisfying to have worked with the all Midlands based advisory teams at Ansons and SGD to complete the transaction”.
David Thomas-Walls of SGD said “It is great to see this global transaction being advised by Midlands based professionals showing there is the expertise, quality and value to be had from advisers within the region.”
John Taylor on behalf of the Management Team said “We are delighted that such a strong parent company is now in place. Neo Performance Materials is a global leader in the world of magnetics and we are excited to build our future with them. There are synergies which will enable the SG Technolgies Group to go from strength to strength in the coming years. We would like to thank our advisors who looked after us all the way for their professionalism, dedication and support throughout the project.
The buyer was advised by a team led by Ben Saraci at international law firm Baker & McKenzie LLP and by KPMG.
The transaction completed on 19th April 2023.
If you are business owner looking to sell, our Corporate team are on hand to help. Neil Jones, Joint Head of Corporate and Commercial at Ansons Solicitors, can be contacted at firstname.lastname@example.org or on 01543 431184.
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