Are data centres the reason for Peel bid for Harworth?
Our weekly free round up of key deals and major moves in the Rainmakers world
Hello Rainmakers,
Welcome to your weekly round up of deals from around the country.
Bodycote is the latest UK industrial business to attract the attention of US private equity investors, but first we delve into what’s behind Peel’s bid for Harworth group.
But first a reminder, This is free to all who have signed up, however Rainmakers subscribers get at least two unique pieces a week, one in the summer, and also full access to our back catalogue of investigations, scoops, and insights, including updates from The Secret Investor, interviews with entrepreneurs, and the leaders from VC and PE investors like Endless, Foresight, Mercia, and LDC.
Regeneration specialist Harworth Group has become the target of a £583m takeover bid from Manchester-based Peel Holdings.
The audacious bid consisted of a cash offer for Harworth through Peel Pepper (UK), valuing the company at approximately £582.9m.
However, following Peel’s stock market announcement on Thursday, Harworth’s response was to review the terms and urged shareholders to take no action.”
The offer values Harworth shares at 172.5p each – a premium of 20.1% to Wednesday’s closing price and 36% above the company’s three-month volume-weighted average share price.
But alongside the financial offer, Peel has also signalled plans for a wide-ranging strategic review that could reshape one of Yorkshire’s best-known regeneration businesses.
So what’s behind it?
According to AJ Bell investment director Russ Mould enthusiasm for all matters related to artificial intelligence (AI) may be one factor behind the takeover offer.
“One land sale back in 2024 to Microsoft showed that Harworth had assets that were suitable for the development of a hyperscaler data centre, and the FTSE 250 index member has identified a second project where sale negotiations have already commenced. Perhaps it was this news that focused Peel Group’s mind, and the share price has shot up to match the all-cash offer price of 172.5p in response.”
He added that there’s also something of a realignment going on in UK real estate where plenty of investors clearly see long-term value in British brick and mortar.
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Any Bodycote shareholders that cashed out in a share buyback programme at 700p will be kicking themselves this week as the stock hit 900p after two US private equity bidders made generous cash offers for the Macclesfield, Cheshire headquartered heat processor.
Both private equity offers value the company at around £1.6bn. The business was valued at £1.56bn on current share trading.
Responding to speculation regarding potential offers, it confirmed CVC Advisers has proposed an offer of up to 915p per share, including a 7.2p interim dividend.
The board revealed that the CVC proposal follows earlier approaches from CVC regarding a possible cash offer.
And Veritas Capital Fund IX has proposed an approach of up to 914p per share, also including the 7.2p interim dividend.
Again, Bodycote says the Veritas proposal follows a number of earlier approaches regarding a possible cash offer.
The Bodycote board said it has carefully considered both proposals and would be minded to recommend them to shareholders, subject to satisfactory due diligence and definitive documentation.
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A Market Harborough manufacturer is putting a new spin on an old family business after completing a management buyout backed by seven-figure HSBC UK funding.
Harboro Rubber has changed hands after six generations, with managing director Michael Fallis-Taylor taking full ownership from James Briggs.
The business, which makes specialist rubber components and the Dainite shoe sole brand, is now looking to stretch its growth further through R&D, new products and investment in manufacturing technology.
Fallis-Taylor said: “Having spent the last eight years helping to shape its growth, I’ve seen first-hand the dedication of our people, strength of our partnerships and the reputation we’ve built.
“Taking ownership allows us to write the next chapter in a remarkable six-generation story, combining the heritage, craftsmanship and values that have stood the test of time with a bold vision for the future.”
HSBC UK backed the deal, with relationship manager Sophia Woods saying: “It’s fantastic to support Harboro Rubber through this milestone moment. The business has an incredible 130-year history, and it’s exciting to see that legacy being carried forward by a team that is passionate about its future.”
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A Midlands accountancy firm is adding to its regional reach after joining forces with a Tamworth rival, bringing more expertise and services under one roof.
Jerroms has merged with the Tamworth office of Philip Barnes Accountants, strengthening its support for small and medium-sized businesses.
The move sees the two firms combine their local knowledge and client relationships, while giving customers access to a wider range of specialist advice through the wider Sumer Group.
Philip Barnes’ Uttoxeter office will also join fellow Sumer member DPC as part of the reshuffle.
Lucas Markou, director at Jerroms said: “Welcoming the Philip Barnes Tamworth team into Jerroms marks an exciting step for both firms. Their strong local reputation and client-first approach align closely with our own values, and together we’ll be able to offer an even broader range of services and specialist support. This partnership strengthens our presence in the region and reinforces our commitment to delivering high-quality advice with genuine local insight.”
John Clark, director at Philip Barnes’ Tamworth office said: “Joining Jerroms gives our Tamworth clients access to wider specialist capability while allowing us to maintain the personal, local service they value. This partnership is a natural next step in our growth, and we’re excited about the opportunities it creates for our clients and our team.”
With the numbers adding up, the firms say the deal will combine local relationships with the wider resources of Sumer – giving Midlands businesses more in their advice column.
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Television presenter Nick Knowles has become a shareholder in Championship rugby side Cornish Pirates.
The presenter, best known for shows such as DIY SOS and National Lottery: Who Dares Wins, is the latest person to join the club’s ownership group.
Pirates became the first English professional side to have American ownership when Pittsburgh-based Stonewood Capital Management took a stake in May.
Sally Pettipher, chief executive of Cornish Pirates, told BBC Sport: “This investment, becoming a shareholder, is him putting some skin in the game and bringing with him his rugby heritage. He’s got a rugby brain, he’s got a rugby background, he’s well connected in that world, he does an awful lot of philanthropy in that world and he brings visibility to us, which I think is really important.”
She added: “He’s Cornish by choice. There’s a spirit to the place that gets under your skin and he’s been an ambassador for Cornish Pirates for over a season now already, he’s in the crowd and people don’t know.”
The club has been looking for more investment since long-serving owner Sir Dicky Evans’ near three-decade association with the club ended in January 2025.
Cornish Pirates’ ownership is now a mix of their United States-based investors and a group of shareholders.
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Having now completed the Rainmaker events in the West Midlands, North West and Yorkshire, we have also now announced dates and an opening for entries for the East Midlands event on the 5th of November in Nottingham and the South West event on the 26th of November in Bristol.
Last year the events sold out, so book early to secure your table.
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