Accountants and business advisers James Cowper Kreston has advised the management team of GfK's animal and crop health division on its management buy-out, which was agreed on 13 November 2015.
Based in Weston, Berkshire, the business, led by its Global Director Stephen Hearn, has grown rapidly since inception, delivering sales of around USD40 million in 2014. Building on the foundations of an already successful business in agricultural and animal health market research globally, the new company will continue specialising in all aspects of market research in animal health, crop protection, farm machinery and equipment, seed/biotech & fertilizers. All of the company’s 220 employees across 18 major agricultural and animal health markets will transfer to the new company.
In a partnership agreement that is part of the transaction, GfK have agreed to support the new company in the years ahead by allowing them to benefit from GfK’s innovative methodologies, processes and insights. In addition, to provide clients with a global reach, the new company and GfK will collaborate in geographies where the new company does not currently have a presence.
Stephen Hearn, GfK’s Global Director Animal and Crop Health and designated CEO of the new company, says: “We are on the brink of an exciting future with a new, agile organisation. We will continue to invest in attracting top market research talent to deliver excellence to our clients through innovation, new product development, acquisitions and joint ventures. We plan to make a significant portion of the new company ‘employee-owned’ to foster this approach.
“I would like to thank the Corporate Finance team at James Cowper Kreston for its pragmatic and diligent approach throughout the transaction. The team was always on hand and dealt with any issues promptly. This, combined with their knowledge of the business, enabled us to work with a leading private equity house to help move the company into its next phase of growth.”
Nick Rogers, Partner and Head of Corporate Finance at James Cowper Kreston, says: “We are delighted to have advised Stephen and the rest of the team on the management buyout. The animal and crop health division is well-established and has grown successfully since its formation. We originally advised Stephen on the merger of Kynetec with DMR in 2007 and its subsequent sale to GfK in 2010. We wish them every success in the future and look forward to working with them on the next stage of their development.”
The James Cowper Kreston Corporate Finance team on the transaction consisted of Nick Rogers and Stuart Williams. Inflexion Private Equity invested alongside the management team. Closing of the transaction is intended to take place in the first quarter of 2016.
