Cross Services Group Limited (CSG), a leading multi-discipline specialist services group has undergone a management buy-out, which will see the high growth business pursue further significant expansion.
CSG is aiming to capitalise on market opportunities, through its recently extended range of services, geographical presence and developing sales and marketing activities.
Leading the MBO team is the existing joint managing director, Steve Gendler who joined the group in 1992. Gendler (45) leads a management team that has been instrumental in the recent growth of the group. “Our ongoing investment in our strong management, excellent workforce, systems and services, will ensure that we are extremely well placed to meet the challenges of the evolving marketplace. Our planned acquisition of further specialist services in security systems shows further commitment to improving the strength of our business.”
With a £45 million turnover CSG, whose head office in located on Sutton Road, St Helens, has a blue chip client base which includes; Astra Zeneca, GSK, Manchester Airport, Lever Faberge and Bruntwood Estates.
It has expanded significantly over the last three years mainly as a result of customer demands. Historically the company concentrated on electrical engineering but now provides a turnkey project management service incorporating interior design and fit outs, security, facilities management, as well as mechanical and electrical engineering.
The Group also includes Charles Andrews, a long established consultancy with engineering and environmental specialist services. The company has recently opened up a southern office in Harlow and believes its range of services is unrivalled in its market place.
The majority of the original shareholders will continue in key management roles. Ex managing director, Norman Rothwell, who becomes non-executive chairman said; “The deal provides a natural success of management within the business to take the business onto a level of growth. It represents an exciting time for the company, its employees and customers alike.
A team from the Manchester office of Clearwater Corporate Finance (Clearwater) comprising Paul Jones, Karl Moss and Jon Mercer structured, led and arranged the deal for the MBO team.
Paul Jones, principal with Clearwater said the deal provided an excellent platform for the Group to move forward. “The deal was structured to provide the existing shareholders with an opportunity to harvest some of their wealth and at the same time provide management with a fantastic opportunity in continuing to increase value for all the shareholders.”
Funding for the deal was provided by The Royal Bank of Scotland in Manchester, led by Phil Tarimo. Also acting for management was Peter Bibby of solicitors Keoghs.
Philip Travis, partner at TMG Corporate Finance in Manchester, structured the deal on behalf of the vendor. Commenting on the completion, he said; “The structuring of the deal was challenging as the various shareholders had quite different requirements from the deal. The eventual structure provided the company with an ideal combination of retaining some involvement from the original shareholders whilst allowing existing management an opportunity to take the business forward.”
James Kerrigan of DLA in Manchester also acted for the vendors, whilst Addleshaw Booth & Co advised the bank.