Endless reaps 6x on Acenta Steel exit

Carmen Reichman
13 March 2013

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Endless has sold its stake in UK-based steel bars processor Acenta Steel to the company's management, reaping a return of 6x its original investment.

Endless, a UK-based mid-market investor that specialises in acquiring non-core businesses from large corporate groups, has exited Acenta after two years of holding. The management buyout was led by CEO Tarlok Singh and CFO Colin Mills with support from long-term funding partner GE Commercial Finance.

Previous funding
Endless acquired Acenta (then named Niagara LaSalle UK Ltd) from its US parent company Niagara Corporation for around £27m in January 2011. At the time, the business was viewed as non-core by its parent and was facing challenges due to volatility in worldwide steel demand, the GP said in a statement.

However, the business showed resilience during testing market conditions over the past two years and was able to grow its sales and pay down debt. It achieved a turnover of £82m in 2012.

Company
Acenta is a processor and distributor of bright steel bars that can trace its origins back to the 19th century. The business is headquartered in Willenhall, West Midlands, and has five additional sites across the UK. It serves around 5,000 customers worldwide and employs 343 people.

People
The Endless investment was led by Darren Forshaw, James Woolley, Indra Valeinis and Kerry Swain.

Advisers
Vendor – Eversheds, James Trevis (Legal).
Acquirer – Gambit Corporate Finance, Adrian Jones (Corporate finance); DWF, Adrian Cutler (Legal); PwC, Karl Harriman (Financial due diligence).
Debt – Squires Sanders, Paula Laird (Legal).