The debt package has allowed co-founder to buy his partner’s shares.
Investec Growth & Acquisition Finance (Investec) has provided a debt facility to support the buy-out of chemical distribution company 2M Holdings in a deal led by co-founder Mottie Kessler.
2M’s M&A activities started with the acquisition of Liverpool-based Banner Chemicals in 2004, followed by the subsequent purchases of MP Storage in 2006 and Leeds-based Surfachem in 2007.
The business was formed in 2003 by Kessler and Ieuan Thomas, with the objective of growing a portfolio of companies in the chemicals distribution sector. The company now employs 200 staff and generates revenues of over £100 million.
Investec’s undisclosed debt package has allowed Kessler to complete the purchase of his co-founder’s shares, after the conclusion was reached that 2M’s long-term growth plans would benefit from his full ownership.
‘We discussed the transaction with a number of providers and found Investec to be the most personal and business minded of all,’ says Kessler.
Tristan Nagler, banker at Investec, comments, ‘We are delighted to support Mottie Kessler on a transaction that maintains 2M’s future independence.’
He adds, ‘[Investec] 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.’