PATIENCE PAYS OFF IN RS INDUSTRIAL INVESTMENT

A lengthy process has resulted in the right outcome for RS Industrial, which has received substantial private equity investment from Foresight Group.

The deal, overseen by Joe Norris, KBS Associate Corporate Director, means the County Durham-based industrial services supplier joins the portfolio of London Stock Exchange-listed Foresight, which focuses its investments on sustainability-led assets.

RS Industrial was established in 2001, initially offering overhead crane maintenance and repairs as well as the supply and inspection of lifting equipment. It subsequently expanded to incorporate an engineering supplies shop, the product range including power tools, workwear and PPE.

The company’s directors, Mike Riley and Neil Sanderson, were looking to de-risk and step back from the day-to-day running of the business to a more executive role, in order to spend more time with their young families.

This was enabled by the investment from Foresight Group, which manages £12.2billion for some of the world’s largest institutional investors, private and high-net-worth individuals – rewarding the perseverance of all involved with the transaction.

“The business was on the market for several, quite turbulent years, all through the pandemic,” explained Joe Norris. “We spoke with all kinds of buyers in that time before alighting on Foresight as the best partner for the business.”

The RS Industrial deal forms part of Foresight’s £90million North East Fund which is supporting growth companies which are either based, or have significant operations, in that region of England.

“Foresight specialises in investing in exciting regional businesses and RS Industrial represented an ideal fit for its North East Fund given the company’s sustained growth over many years,” added Joe.

“Foresight is a long-term investor with an evergreen fund, so I anticipate continued growth under its stable ownership and with the continued input from Mike and Neil, drawing on their wealth of experience in the business.

“I’m extremely happy with the result we achieved for Mike and Neil and I think this process, running as it did through the last few turbulent years, showed the value of patience and deliberation in finding the perfect buyer for a business.”