China Hengrui, known as HRC Group in the UK, has agreed to buy composite design and analysis company Engenuity. The deal means Engenuity enters the Chinese market as part of HRC’s professional materials analysis, design and engineering consulting business, participating in its domestic automotive projects. It will otherwise continue to operate independently in the global automotive market.
Severn Trent has acquired renewable energy business Agrivert UK for £120m. Agrivert operates five food waste anaerobic digestion (AD) plants between Swansea and Surrey; Severn Trent currently has two in Coleshill and Stourbridge with a third under construction in Derby. These additions boost Severn Trent’s green power division with a further 106GWh of energy generation per annum. Agrivert also brings with it five green and commingled waste composting sites located to the south and west of the Severn Trent region. The company generated revenues of £26m and EBITDA of £10m in 2017.
Peach Technologies has announced the acquisition of fellow Southampton business Taylor Made Computer Solutions. The combined firm will have sales of c. £20m, around 200 employees and over 1,000 business customers. The deal combines TMCS’s IT services, security, backup and disaster recovery solutions with Peach’s existing expertise in connectivity, mobile, IT and telephony services. Peach has hinted that further acquisitions could be imminent.
A subsidiary of IG Design Group, a UK firm specialising in the creation of greetings cards and gifts, has bought US rival Impact Innovations. IG Design Group Americas will acquire the gift packaging and seasonal decorations supplier for a total of £56.5m. In conjunction with this, Design Group has also announced a share placement with which it aims to raise £50m before expenses. Impact Innovations recorded revenues of $155.9m and underlying EBITDA of $15m in 2017.
Branded pest control product manufacturer Pelsis has agreed to merge with US counterpart Curtis Gilmour, bringing the combined firm’s revenues to €125m. The deal follows LDC’s investment in Pelsis in August 2017. The enlarged group will operate from 15 sites worldwide, distributing to over 80 countries and employing more than 420 staff.
Irish videogame company Keywords Studios has announced the acquisition of Studio Gobo and Electric Square (together, ‘Gobo’) for up to £26m. Working from three studios in Brighton and Hove, Gobo provides game development services for developers and publishers around the world. Founded in 2011, it employs 170 software engineers, artists, animators, game designers, QA testers and producers. Over the years it has worked for franchises including Disney Infinity, Ubisoft’s For Honor and Microsoft’s Miami Street. Building on its purchase of d3t last year, this latest deal takes Keywords’ UK game development team to 220 staff and expands its worldwide game development team to 610 people. Gobo’s revenues have nearly doubled to £11.6m in the last 12 months to 31 July 2018.
The leadership team of The Specialist Works has completed an MBO from founder Jim Lewcock. On closing the deal the company has announced a £2.5m future business growth bonus scheme for non-director staff funded by the exiting Lewcock family and shareholders. The MBO comes on the back of a year which saw a 40% rise in gross profit on turnover of £119m. The media agency employs over 200 people and operates across more than 40 countries. It will henceforth be led by CEO Martin Woolley and COO Parry Jones.
Plastic products design and engineering group RPC has sold its foodservice business Letica. Considered a non-core business by the group, Letica Foodservice has been sold to Graphic Packaging International for $95m (£74.5m). The deal allows RPC to settle the earn-out associated with its $640m (£495m) acquisition of the company in March 2017. In addition to this disposal, RPC has also marked its Scottish spirits closures business and its European injection moulding automotive business for sale. Finally, RPC has also announced its acquisition of PLASgran for £34.5m. The Cambridgeshire-based company specialises in recycling rigid plastics, and generated £27m in revenue in the last financial year. It will complement the film recycling activities of RPC’s British Polythene Industries division, adding a further 50,000 tonnes of rigid recycling to its existing capacity.
Commodity business SIMEC Infrastructure has completed the acquisitions of Bird Port and Cargo Services UK. SIMEC is part of Sanjeev Gupta’s GFG Alliance, which includes the Liberty House group of companies. With a turnover in excess of £10m, CSUK handles general and bulk cargoes via seaborne traffic at its own private port. Via its subsidiary Ryan Transport, the group offers storage facilities and warehousing as well as further distribution through the UK and Ireland. On the other hand Bird Port, which will be renamed SIMEC Bird Port on completion of the deal, is the busiest dock on the Usk, handling up to 800,000 tonnes of mostly steel and bulk cargo each year.
AFH has made its 11th and largest acquisition of the financial year, buying HTH Group in a deal worth up to £5.1m. This latest addition includes HTH and its subsidiaries Thomas Heald and Thomas Heald Solutions, adding 26 advisors as well as offices in Chesterfield, Doncaster and Leeds to the group.