The ones that got away...
And the popcorn is out for the deals to come
Hello Rainmakers,
Some of the biggest deals news this week are the ones that have got away and the ones that are yet to come.
Everyone’s getting the popcorn out for the showdown at the offices of Addleshaw Goddard in Manchester next Friday when Mike Ashley of Frasers might edge his way on to the board of Boohoo, and may even force a transformational process.
Ashley, the spectre of UK retail - online and offline - will be dominating many CEOs thoughts over Christmas.
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The battle for the reins of Manchester-headquartered fast fashion giant boohoo could be settled as soon as Wednesday next week when the proxy votes are registered ahead of a specially convened meeting called to attempt a boardroom coup by its largest shareholder, Frasers Group.
It will be known by then whether Frasers founder Mike Ashley has been successful in securing enough votes to gain a seat on the board for Mike Lennon and for Ashley to be installed as chief executive.
The Ashley and Kamani family camps have roughly 30% of shares in the bag.
But the odds currently appear to be in favour of the founding Kamani family, who secured the support of ISS and Glass Lewis.
A great deal will hinge on the largest shareholders in boohoo Schroder Investment Management which owns 7.11%; and Camelot Capital Partners which owns a 5.60% stake in Boohoo Group.
However, the fact that both sides are issuing almost daily missives on the issues appears to show that they don’t have the General Meeting sewn up.
That vote on the resolutions will be held at the offices of law firm Addleshaw Goddard in Manchester next Friday at 10.00 a.m.
It is likely that Ashley will turn up to the meeting to add to the ongoing drama if there is a chance the resolutions will pass.
The most recent salvo in the ongoing row had Tim Morris, boohoo Group Chair, saying they would not agree to Ashley and Lennon joining the board “in any circumstances”.
“The Board has consistently said that due to obvious conflict points and because of their historical ties to Frasers, Mike Ashley and Mike Lennon are not appropriate candidates to join the Board in any circumstances, whatever commitments are offered,” he said in a statement.
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Another deal that hasn’t happened is the attempt by Volex, the Warrington-based cables group, which was mounting a £248.6m hostile takeover bid for TT Electronics.
That deal is now OFF after the board of TT Electronics consistently declined to engage with Volex and had rejected each of its proposals.
This week in a stock exchange announcement, Volex confirmed that it does not intend to make any further offers for TT Electronics.
Carr’s the engineering and agricultural group is also focusing on becoming just an agricultural group.
In April it announced it was exploring options for the sale of its engineering division and a future focus on agriculture, saying that continuing with two divisions is an inefficient operating model.
This week it confirmed that the sale process of the engineering division “is ongoing and progressing positively”.
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Private equity group Foresight has invested into Chester-based ArmstrongB2B a specialist marketing agency for global blue-chip industrial brands.
Founded in 1991, ArmstrongB2B provides a single-source marketing offering which includes brand development, animation, web development, campaign management and performance marketing. ArmstrongB2B is highly regarded for its CGI and animation capabilities that allow its clients to visualise and communicate complex industrial technology to global audiences.
Employing 54 staff, the Company operates from a head office in Chester and generates revenues of £7.6 million and its 40% of its revenues are in the US.
Foresight is an interesting player in lower to mid-market private equity. Plenty of funds raised, a regional focus across 12 offices and a real appetite to back small and medium sized businesses with a penchant for niche sectors you never knew existed.
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Goodfish Group has completed its acquisition of Schneider Electric’s UK extrusion and assembly business after an £11m facility.
The funding from Shawbrook Bank has enabled the plastic and composite components manufacturer to integrate the operations in Flint and boost working capital facilities for future growth.
Founded in 2010 by Greg McDonald, Goodfish Group has grown through acquisitions and now operates four manufacturing and assembly facilities across the UK. The new business will operate as Goodfish (Flint), alongside other manufacturing businesses in St Asaph, Cannock and Worcester.
To fund the deal, Shawbrook provided Goodfish with a multi-asset facility comprising receivables, property, inventory and plant & machinery, bringing the total financing provided to £11m.
Shawbrook previously supported Goodfish’s acquisition of Honeywell’s injection-moulding, extrusion and tool-making operations at St Asaph.
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On Tuesday, the news broke that the self-styled "rebels of accountancy" Cooper Parry had new private equity backers.
On Thursday we brought you a deeper dive under the surface of that deal, which came just two years after Waterland Private Equity invested in the company, in a deal which valued Cooper Parry at £100m, it sold its stake to New York-based Lee Equity in what was described by Cooper Parry as "one of the largest deals of its kind in the global accountancy market.
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Streets, the Lincoln-headquartered accountancy firm, is quietly hoovering up regional firms in a bid to grow through acquisition.
This week, Streets hoovered up Dyke Ruscoe Chartered Certified Accountants to create Streets Dyke Ruscoe. They've called it a merger, but that's being polite - Streets is a top 40 practice and has this year "merged" with similar firms across Yorkshire, the East of England and the South West.
"We continue to find that firms we talk to and that merge with us like our approach which is very different to the private equity led deals, as we seek to build on the success of the existing practice and empower individuals to drive and lead on their future growth and success," said Paul Tutin, managing partner, who is steadily building an impressive empire from his power base in Lincoln and now boasts 31 offices and over 400 members of staff. Ones to watch.
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This week we also brought you piece that was a few months in the making, as we tried to get our collective heads around the concept of Growth Credit.
Ryan Sorby of Palatine has been patient with us, and what started as a concept is now a reality as a flurry of deals got over the line in the last part of 2024.
It amounts to a quiet revolution in the corporate finance lending space and Venture Debt, or Growth Credit, was until recently considered a US thing. A tool of Silicon Valley venture funders looking to keep the lights on with additional rounds of non-equity funding, which won’t trigger a revaluation of an investment.
But according to Pitchbook, venture debt continues to grow in Europe as fast growing companies look for cheaper financing.
A link to the full piece is here.
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Leeds-headquartered drainage and wastewater utility specialist, Lanes Group, has acquired North West septic tank specialist S and C Foster this week.
Lanes Group is a national drainage company providing services for utility, rail, local government, transportation, construction, telecoms and domestic sectors.
The company was established in Leeds in 1992, and is now made up of a network of 25 locations in the UK, with a workforce of more than 4,000 people.
Founded in 1990, Preston-based S and C Foster provides both domestic and commercial tanker, jetting and liquid removal services in Lancashire and the surrounding regions.
The acquisition will support Lanes Group’s ambitions for UK expansion, bringing together two strategically aligned businesses, bolstering Lanes Group’s existing commercial activity in the North West.
The group was advised on the deal by RSM UK. RSM’s deal team managed the acquisition, led by James Wild and Rikesh Patel, with support from Ben Everson and Austin Halewood. Mills and Reeve provided legal advice.
This transaction marks the second buy-side sale for Lanes Group advised by RSM this year, following the company’s acquisition of Clear-flow in February.
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RAINMAKERS CONFERENCE IS BACK IN 2025
Our speakers have been revealed for the 2025 Rainmakers conference. They include those featured below, and many, many more.
twisted loop are excited to come on board as our headline partner. They join partners BGF, Dow Schofield Watts, KPMG, NorthEdge, Palatine, Shawbrook, Squire Patton Boggs & TDC.
Twisted Loop said: “This event is a testament to the strength and ambition of the North West’s business and investment community, bringing together an incredible range of talent, insight, and expertise.
“At twisted loop, we’re passionate about helping ambitious companies and progressive investment communities unlock new value by putting data and AI at the heart of their growth strategies. The themes of this year’s conference - collaboration, innovation, and tackling future challenges - resonate deeply with our mission to transform the way businesses grow and operate to reach their full potential.
“As the region continues to embrace innovation and adapt to a rapidly changing technological landscape, we’re proud to support Rainmakers in celebrating what makes the North West so dynamic, while contributing to the conversations that will shape its future success.”
And we have our breakout room partner PHD Industrial Holdings, drinks reception sponsor Marks Sattin, lanyard sponsor Gilbanks, table sponsor Datasite and umbrella sponsor T3C Group Ltd.
A powerful line up of speakers including high-calibre private equity backed entrepreneurs such as Ruth Percival, Helen Oldham and Thomas Ryder, the founder of Applied Nutrition and the chief executive of the biggest UK stock market float of 2024.
Hot topics on the packed agenda include how to create success in tech, the art of building value in a growing business, and making the case for private equity and corporate finance professionals on the political stage.
Newsworthy speakers will also include Shru Morris, anointed successor DSW, and Dave Richards, founder of IntelliAM, who has a tale to tell about his experiences with tech business WANdisco, and founder of Palatine private equity Gary Tipper.
Also appearing to set the political backdrop to the eventful year just gone will be Karim Palant, head of external affairs at the BVCA, and Greater Manchester Mayor Andy Burnham.
So save the date for Rainmakers 2025 – Wednesday 26 March, 2025 – and secure your place today at The Point, Emirates Old Trafford, Manchester.
It will bring more opportunities to network, more amazing speakers, more candid debate, more inspiring entrepreneurs, but also a chance to discuss the challenges of value creation.
The first Rainmakers Conference this March sold out, with more than 400 people attending to hear the insights and perspectives from entrepreneurs, investors and advisors, and to network with senior figures from across the corporate finance community.
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