Award for Deal of the Year

PEM Corporate Finance (PEMCF) are delighted to have won the Deal of the Year (under £10m) category at the Insider Central & East Dealmakers Awards 2020 for their role as lead adviser on the sale of Chell Instruments to SDI Group plc.

PEMCF were also shortlisted in the same category for the sale of ATP Architects to RSK Group. Philip Olagunju, Partner, was shortlisted in Dealmaker of the Year category.

Philip Cunliffe, Insider’s regional business editor for the Central & East, said:

In this most extraordinary of years, when all businesses have had to change whole working practices in order to maintain customers and market positions, it’s been clear that the Central & East corporate finance community has been incredibly resilient and consistent in their support of their clients. The deal activity, whilst perhaps not quite at the levels of previous years, was still impressive and certainly augurs well as we emerge from the pandemic. We salute the commitment and skill of all the shortlisted companies and individuals and congratulate the winners.

Lake Falconer spoke about his relationship with the vendors at Chell Instruments which has spanned several years:

We first met Ron Mitchell of Chell when he attended an event we ran back in 2013. He was working on an exit plan but was in no rush. That meant we were able to get to know Ron and Nick Broadley well over the interim period, and to give input to their strategy as it evolved in the run up to the sale. It’s a really good example of how it can be beneficial to start exit planning conversations early. You get to know and understand the company, and just as important the key people and what they want to achieve. Chell was always a good business and it got stronger as it focussed more on its own branded product and intellectual property. We’ve enjoyed seeing it develop since we first met them right through to the sale in 2020, and I’m delighted that it was a good outcome for both Ron and Nick.

Philip Olagunju was lead adviser on the sale of Chell to SDI Group, he said:

This was a really interesting deal to advise on. The transaction dynamics meant we ran a dual process, with more than 100 domestic and overseas buyers and PE houses contacted. There was plenty of strategic interest in Chell, and having advised the shareholders on all the options available, we decided that a trade sale met both the shareholders’ objectives. We subsequently entered exclusivity and due diligence with SDI Plc, as the business had implemented an acquisitive growth strategy and saw Chell as an opportunity to accelerate the roll-out of new products whilst significantly enhancing SDI’s brand portfolio. It was agreed that the deal would be structured on a cash-free-debt-free basis, subject to normal levels of working capital, and that Nick would be retained as MD post-completion.

Recognition must also be extended to Leathes Prior who were appointed by the vendors to work on all the legal aspects of the transaction, Birketts advising on buy-side legals and HSBC for their funding of the deal.

For more information, please contact Shaun Nichols, Marketing Co-ordinator at PEM Corporate Finance, on 01223 949 757 or shaun@pemcf.com.