Selling My Manufacturing Business

Diagnostic Solutions Ltd

Diagnostic Solutions (“Diagsol”, “DSL”), which designs and develops low-cost condition monitoring or predictive maintenance (PdM) sensing systems, has been sold to Megger Group in a transaction overseen by Luke Rae, KBS Corporate Deal Executive.

Founded in 1998, Diagsol is a predictive maintenance specialist which has created its own niche in the food and beverage industry with its clients including some of the biggest soft drinks brands.

The company, headquartered in Rossett, between Chester and Wrexham, has established a strong reputation for vibration monitoring and analysis with its easy-to-use products that bring reliable fault detection.

KBS Corporate was instructed to orchestrate the sale of Diagsol to facilitate growth under the impetus of new ownership and shareholder retirement within two years.

After 38 parties came forward the first offer was accepted from Megger Group, whose investment into online measurements further increases Diagsol’s industry relevance for the future.

Established for 150 years and a market leader of electrical test equipment, Megger Group is a global company with factories located in the UK, USA, Germany and Sweden.

Megger was attracted to Diagsol by the opportunity to enter the wireless sensors market, carrying out condition monitoring via cloud services to identify potential faults such as worn bearings or misalignment in motors and generators.

The acquisition is expected to generate strong growth potential for Diagsol, particularly through market expansion.

“We are incredibly excited to bring DSL on board with the Rotating Machinery team, as DSL’s vibration expertise adds extensive capabilities to our motor and generator testing range,” said Damon Mount, Head of Business Development at Megger.

Luke Rae was supported in the sale of DiagSol by KBS colleagues Tamsin James, Senior Corporate Document Writer, and Hannah Stewart, Research Analyst.

Datalink Electronics Ltd

Mariam Smith, Managing Director of Datalink Electronics, has spearheaded a management buyout (MBO) of the Loughborough-based company, with the help of KBS Corporate.

Datalink Electronics was established in 1983 and provides a wide variety of integrated design and production services to a broad customer base ranging from multinational PLCs to start-up businesses.

The two shareholders, Eric Luckwell and Ian Wilson, decided the time had arrived for them to retire and instructed KBS to orchestrate a sale process, during which it became clear that an MBO led by Mariam would be the ideal solution.

Fabio Rambelli, KBS Corporate Associate Director who oversaw the transaction, said: “Mariam had a very active management role and was gradually taking over an increasing number of responsibilities from the shareholders, which meant she was the perfect person to sell the business to.

“I’m happy the MBO completed as Mariam is absolutely the best person to take over the company.”

In their announcement of the deal, Datalink heralded the MBO as “a pivotal move that signifies a new era” for the business and “a catalyst for strategic evolution”.

“Having effectively run the company for the past 12 months, Mariam emphasises the infusion of new talent, machinery and a streamlined structure,” Datalink’s statement said.

“The MBO brings more autonomy, allowing Datalink to focus on key areas such as talent acquisition and investment in equipment. This new-found independence is set to redefine the company’s strategic direction, creating a dynamic and responsive organisation.

“The post-buyout strategy includes exploring new partnerships and collaborations that align with Datalink’s growth objectives, reinforcing the company’s commitment to innovation and excellence in electronic design and manufacturing.”

Fabio Rambelli added on behalf of KBS: “I would like to thank Eric, Ian and Mariam for their hard work on this transaction and for working with us. I wish all parties the very best in the future.”

Law Print & Packaging Management Ltd

Stockport-based Law Print & Packaging Management Ltd (“Law Print”) has been sold to South East Asia’s leading fully-integrated packaging manufacturer in a deal overseen by KBS Corporate Finance.

Law Print offers extensive packaging solutions services worldwide, from design, printing and quality assurance through to international logistics management.

Law Print works with a global network of accredited packaging manufacturers and suppliers, with pet food packaging being one of its specialist areas of expertise.

The successful acquirer is SCG Packaging (SCGP), a company listed on the Stock Exchange of Thailand with a comprehensive and diverse portfolio of more than 120,000 different products including retail display packaging, grocery bags, medically related items and labware.

The transaction was made through SCGP Solutions (Singapore) Pte, a wholly owned subsidiary of Bangkok-based SCGP, and will expand SCGP’s sales channels and customer networks with a focus on the premium market of fast-growing pet food manufacturers in the UK and across Europe.

Further synergies include the cross-selling of other SCGP consumer packaging products to multi-national clients with which Law Print has a long-term association.

Law Print’s owners Tim and Morven Law commissioned KBS Corporate Finance for the sale of their business and were advised by John Hunt, Corporate Finance Director, and Annie Pritchard, Corporate Finance Assistant Manager, along with Gateley Legal and Holly Bedford, K3 Tax Advisory Managing Director.

Tim Law, founder and shareholder of Law Print, commented: “At the start of this process, we set out with a clear intention to find a purchaser who could bring significant synergies to the table. I am convinced the depth and knowledge that resides within the SCGP Group will ensure further growth and security for Law Print and its tremendous team in the future.

“After nearly two decades of trading autonomously, this marks the commencement of a new and promising chapter. It will be business as usual for Law Print as we maintain our current management, operations, customers and brand identity.

“However, this deal will further support the company’s continued growth with an enhanced product offering and new market development, whilst helping drive SCGP’s expansion into the UK, Europe and North America.

“The union between our businesses presents a host of exciting synergies and benefits to our existing and new clients. These include an enhanced product portfolio, heightened sustainable practices to which SCGP and Law Print are hugely committed, and expanded reach which enables us to explore further into North America to a more diverse and extensive customer base.

“This collaboration is set to expedite our mission to deliver pioneering, forward-thinking flexible packaging solutions.”

John Hunt and Annie Pritchard of KBS Corporate Finance expressed how much they had enjoyed working on the transaction.

“Tim, Morven and the entire Law Print team have been great to work with over the course of our engagement,” said John. “The deal provides for a full exit for Tim and Morven, enabling them to spend more time with family.

“Under Carole Bayne’s continued leadership with support from SCGP, we are more than confident Law Print has a very bright future ahead.”