Project Sumner

 
Sedulo’s Corporate Finance team led by director Benn Longshaw was delighted to have recently advised office stationery and furniture supplier, Egan Reid on the acquisition of Yorkshire based business, Head Office Supplies for an undisclosed sum.

Benn and the team undertook both lead advisory and financial due diligence roles during this project and were key in negotiating deal consideration and a tax efficient structure for the purchasers utilising expertise from our in-house corporate tax team.

Our financial due diligence work highlighted not only important trading trends for the incoming owners but also assisted Egan Reid’s legal representatives, Brabners (Headed up by partner Sam Mabon) in including appropriate warranties and indemnities in the final draft of the SPA.

Benn was also heavily involved in funding negotiations allowing the transaction to proceed on the terms agreed.

The move sees the expansion of Egan Reid’s presence into Yorkshire whilst also adding to their product range. Head Office Supplies, which employs 18 staff members, predominantly supply products to the education sector and the acquisition will see Egan Reid’s turnover increase by £4.5m.

Martin Reid, joint managing director of Egan Reid, said of the deal,

We’ve been looking to make a significant addition to Egan Reid for some time and Head Office Supplies is a perfect fit, with a strong presence in the education sector. The Harding family and their staff have made the company a real success and we are extremely proud and excited to bring it into the Egan Reid fold

Andrew Reid, also joint managing director commented on Sedulo’s involvement in the deal,

Cheers Benn. It’s been a long journey, I would like to personally thank you for all your help and assistance in all of the negotiations on our way to completion. Your professionalism and enthusiasm is a credit to you and all of the Sedulo team

Egan Reid which was established in 1957 and employs 66 staff is now actively working with Benn on seeking out further acquisition opportunities.


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