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Frenger International is pleased to announce that Manutan, a leading player in the European multi-channel distribution market for corporates and local authorities, has signed an agreement to buy 100% of the shares in the company Essex Electrical Wholesalers (EEW), specialized in the distribution of electrical products to tradesmen in the UK.
Established in 1987 and based in Braintree (Essex), EEW is an independent Electrical Wholesaler providing electrical supplies throughout Essex, London and the inner M25 area.
The company EEW generated revenues of 4 million Pounds (4.8 million d’Euros) in 2015 (ending 31 December) with an EBIT of around 5 % of its revenues.
This acquisition will strengthen Manutan’s position as one of the main players in the distribution market to tradesmen in the UK. It enables the group to reinforce its UK presence where the group already trades under three leading brands: Key its historical branch, Rapid Racking acquired in 2008 and Ironmongery Direct Limited that was acquired in 2013.
This is the 3rd acquisition in 3 years that has been initiated and managed by Frenger International on behalf of Manutan and their 2nd in the UK. Frenger’s team has developed a unique method of identifying and initiating discussions with “off market” companies based in the UK, thus avoiding competition. This new transaction demonstrates that Frenger’s customers may still pursue their growth strategy in the UK in the current context of British political and economic uncertainty following Brexit. Furthermore, Frenger engineered a successful deal that allowed Manutan to benefit from a favourable exchange rate and less competition.
Wayne Lysaght-Mason, Managing Director of IronmongeryDirect says: “This acquisition was completed in a record time of 4 months. The fact that the Frenger team really understood our requirements and conducted extensive research across the UK electricals market meant that we were able to uncover those hidden gems that fitted our business plan. We appreciate all the hard work that Frenger have put into this project which resulted in a quick win all round.”
The acquisition was wholly funded by Manutan equity, they are listed on Euronext B and their financial position still remains very solid.
The Manutan group is a European leader in multi-channel equipment distribution for businesses and local authorities. Established in 19 countries through 25 operating subsidiaries, the group is a leading player in Europe. In 2015, the group generated revenues of 620 million euros, with over 40% generated outside of France, and counts over 1 800 employees.
Frenger International Ltd, a Mergers & Acquisitions boutique specialised in the initiation and management of cross-border acquisitions. Based in London and created in 1983, Frenger International has completed more than 70 deals on behalf of European and North American groups across numerous sectors.