Octopus in MBO for Anglo European

04 November 2015

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Octopus Investments has backed the MBO of Manchester-headquartered steel section supplier Anglo European Group.

The capital reshuffle will see CEO Paul Sullivan re-invest some of his proceeds to secure a majority stake in Anglo European, while his brother Chris Sullivan, who works as operations director, will stay as a minority shareholder.

Speaking to unquote", sources close to the deal explain Octopus injected a debt and equity mix in return for a "significant" minority stake in Anglo European. The GP financed the deal via Octopus Apollo, a £110m VCT fund believed to have been used for more than 50 investments.

The firm decided to invest in the business after being introduced to it via financial advisers WKCF and Cowgill Holloway, unquote" understands.

Anglo European will look to add new customers within and outside the UK. Last year, the business bolted on Wales-headquartered Marybern Rolled Products to boost its production and storage capabilities.

The investment via Octopus's early-stage VC fund comes four weeks after the firm closed a £140m vehicle that will target businesses in the later-stage space. Octopus Zenith Opportunities II has already seen its maiden investment when it backed a $60m series-C for holiday booker Secret Escapes in July.

Company
Founded in 1990, Anglo European Group provides steel sections to window, door and ancillaries manufacturers. Its offer covers the rollforming of the material, as well as the pressbraking, cutting-to-size and final delivery. The company services around 400 clients out of its Manchester headquarters and additional offices in Deeside. With a headcount of 45, the business most recently posted £9m in sales.

People
Octopus Investments was represented by investment managers Edward Keelan and Joe Hartman, as well as investment associate Clara Hansen; Keeland and Hansen will join Anglo European Group's board post-transaction.

Paul and Chris Sullivan are respectively CEO and operations director at Anglo European Group, while Peter Toland joined the company as chairperson.

Advisers
Equity - WKCF (Financial due diligence); Shoosmiths (Legal); AMR (Commercial due diligence).
Company - Cowgill Holloway (Corporate finance); AB Corporate Law, Peter Bibby (Legal).