Investec Growth & Acquisition Finance (Investec) has provided an innovative debt facility to support the buy-out of 2M Holdings Limited (2M), owner of chemicals distribution businesses Surfachem and Banner Chemicals, by Chairman and co-founder Mottie Kessler.
2M was formed in 2003 by Mottie Kessler and Ieuan Thomas with the objective of growing a portfolio of companies in the chemicals distribution sector. Its business activities started with the acquisition of Liverpool-based Banner Chemicals in 2004 followed by the subsequent acquisitions of MP Storage in 2006 and Leeds-based Surfachem in 2007. 2M is headquartered in Runcorn and operates from Halifax, Leeds, Middlesbrough and Liverpool. It employs almost 200 staff and generates revenues of over GBP100m.
Having concluded that 2M’s long term growth plans would benefit from his full ownership, Mottie Kessler completed the purchase of the shares of 2M’s co-founder Ieuan Thomas with the support of Investec’s debt package.
Investec utilised a blend of amortising and revolving debt, delivering funding for the share purchase and group refinancing while also providing a framework to support working capital, investment and acquisitions.
Mottie Kessler, Chairman of 2M, says: “We discussed the transaction with a number of providers and found Investec to be the most personal and business minded of all.”
Tristan Nagler of Investec, says: “We are delighted to support Mottie Kessler on a transaction that maintains 2M’s future independence. We are highly supportive of his growth and acquisition plans for the group and look forward to a long association. This transaction is another example that Investec is increasingly viewed as the destination of choice for mid-market entrepreneurs.
“We are strong supporters of entrepreneurs and believe that, in the near term, an increasing number of mid-market companies are going to require innovative funding structures. During the last 12 months we have completed a number of financings for mid-market companies in the GBP5m and GBP65m range.”
