MBO of RDS North Eastern Limited, RDS South East Ltd and RDS South West Ltd
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KBS Corporate has advised on the successful Management Buyout of three regional companies which will be consolidated into one national business.
RDS North Eastern Limited, RDS (South East) Ltd and RDS Southwest Ltd are all part of the RDS GB Distribution Network, a group of regional distributors who supply RDS Technology’s electronic goods to the Agricultural and Industrial sectors. Since their inception, the companies have colelctively gained a reputation for supplying innovative, cost-effective technology, alongside service support and breakdown repair services.
The Management Buyout was led by two existing shareholders of RDS South West Ltd and RDS South East Ltd, after two key shareholders announced their intentions to exit the business.
The opportunity to acquire the portfolio attracted several interested parties and received no fewer than 3 separate offers before a deal was agreed with John Evans and Roger Hawker.
Guy Haynes, Associate Director at KBS Corporate, managed the deal through to completion and commented, “Having spoken to a number of potential buyers throughout the process, it became obvious that the best solution was for John Evans and Roger Hawker to raise the capital to consolidate the three companies. Both John and Roger possess the drive to take the business to the next level and John in particular has contributed to the success of all three companies in the past.
“The deal enables the outgoing shareholders, Tony Heath and David Weston, to exit immediately and pursue other business interests, and we wish our clients the very best for the future.
“Each business was successful in its own right, but their consolidation gives the buyers a nationwide distribution network. This and the subsequent economies of scale should enable the company to become more profitable and move on to the next level.”
Finance was provided by Leumi and legal advice was provided by KBS Corporate’s legal partner, Gateley plc.