RJD backs the management buyout of Chemigraphic Limited
17 December 2010
RJD Partners (“RJD”), one of the UK’s leading lower middle market private equity investors, has backed the buyout of family-owned Chemigraphic Limited (“Chemigraphic”), one of the largest independent full service electronic manufacturing services providers in the UK.
Crawley-based Chemigraphic was founded in 1972 by Frank and Julia Graham, a husband and wife team, who held the respective roles of CEO and FD and are now retiring. The buyout is being led by their sons, Paul and Neil Graham, who between them have worked in the business for over 29 years, together with a new and highly experienced CEO, Bob Adams.
Paul and Neil have been responsible for day to day management of the business in recent years and will assume the respective roles of Sales Director and Operations Director going forward. Bob Adams, who will join the team as CEO, has previously held senior level management positions at various electronics businesses, both large and small, including Thales and EADS.
Operating from a 40,000 square foot purpose built office and factory complex, Chemigraphic designs, assembles and installs complex printed circuit board based components and provides a number of related services including design, full assembly & testing and final delivery. The company has achieved consistent growth through offering a highly flexible and reactive full service and now employs over 125 staff and delivered an annual turnover in excess of £17 million in the year to 31 March 2010.
Alex Hay, Investment Director, RJD Partners comments: “We are very pleased to have completed the investment in Chemigraphic. RJD Partners has a successful track record of supporting buyouts of family businesses and experience of partnering with the next generation as part of the investment approach.
“Going forward management will have our support to maintain the qualities that have made Chemigraphic so successful, whilst at the same time building the business with new clients in related areas.”
Bob Adams, the new CEO of Chemigraphic, said: “I have been working with Neil and Paul Graham for some time in preparation for this buyout. Chemigraphic has an excellent foundation of strong customer relationships and a reputation for quality. We are determined to build on this over the coming years as the company grows to become an important player in the UK specialist electronics sector. In addition we are very pleased to have teamed up with RJD Partners in carrying out this buyout and look forward to working closely with their team in continuing the success of Chemigraphic.”
The RJD Partners team in this transaction comprised Richard Caston, Alex Hay and Jill Williams. Richard Caston and Alex Hay will be joining the board of Chemigraphic.
RJD Partners and Newco were advised by Livingstone Partners (Jeremy Furniss, Graham Carberry, corporate finance advice); Eversheds (Mark Spinner, Ed Waldron, legal advice); BDO (Andrew Harries, Mark Slade, financial due diligence); Armstrong Transaction Services (Robin Illingworth, Ed Hikmet, commercial due diligence); Heath Lambert (George Minoprio, insurance due diligence) and The Quinn Partnership (Paul Quinn, management assessment).
Management received legal advice from Simon Sale and Alison Keyse at Dundas and Wilson. Livingstone Partners also provided advice to management.
The vendor was advised by Baker Tilly (Rob Donaldson, Kirsty Sandwell, and Natalie Ord, corporate finance advice) and Stephens and Bolton (Ken Woffenden, Lucy Handford, legal advice).
The contents of this news release are intended for information purposes only. RJD Partners Limited does not provide investment advice and we strongly recommend that before making any decision to invest or engage in any investment activity, you should obtain proper professional advice. See our full terms & conditions. RJD Partners Limited is authorised and regulated by the Financial Services Authority in the conduct of investment business in the UK. RJD Partners Limited is registered in England and Wales No. 04245768. Registered office: 8/9 Well Court, London EC4M 9DN.