Management Buyout / Non-Core Acqusition
Acenta Steel is the UK’s largest independent engineering steel processor and distributor, operating from six sites across the UK. Headquartered in Willenhall, the business serves a wide range of customers across a number of industries, both home and abroad, from three divisions namely hot rolling, cold finishing/bright drawing and distribution. Despite the legacy complexities in the group and the difficult trading in 2008 – 2010 resulting from significant macro problems with global steel demand, we developed a great rapport and trust with Tarlok Singh, Managing Director of Acenta Steel. Tarlok had committed his working career to Acenta Steel (under its various names) and we wanted to support him.
Endless invested in a stable, profitable business, but one that had suffered from uncertainty for some time. Given the post-recession uncertainties within the wider economy, a key focus post-investment was to ensure Acenta Steel continued to maintain and improve performance in what was expected to be a tough 2011 and 2012. Endless worked with management to take advantage of opportunities to enhance current trading relationships with both new and existing customers. In addition, the business was relaunched and rebranded to further emphasise its independent status and current position as the UK’s largest independent steel processor and distributor.
As a result of the growth in the company's profits and its working capital management improvement, the management team was able to acquire Endless's stake in the business and take it into their full ownership in March 2013, which we were delighted to see, in particular for Tarlok. This resulted in a return of c6x money invested for Endless.
“Having spent nearly 40 years working at Acenta Steel and its predecessors, I am absolutely delighted with the deal to take this prestigious business into private ownership. We have a remarkable group of people here and I am proud to say that our future is truly in our own hands. I would like to personally thank Endless for their outstanding professionalism, integrity and faith in our business, which is contrary to many of the popular myths reported about private equity firms. They have been a first-class owner for Acenta Steel, adding value throughout their tenure and have personally been a great support to me. They invested at a time when others would not and fully deserve the outstanding investment return that they have achieved."
Tarlok Singh, MD of Acenta Steel Limited, March 2013