The corporate team from the Manchester office of national law-firm, Shoosmiths has advised private equity firm, NorthEdge Capital (NorthEdge), on its investment into TKC, a Greater Manchester-based kitchen trade supplier.
The investment was used to back a management buyout of TKC and to secure a majority stake in the £19m-turnover business for NorthEdge.
This is the first deal where Shoosmiths has advised NorthEdge. The national law firm was appointed to provide a range of legal support to NorthEdge including advice around corporate M&A , private equity, banking, tax, employment and legal due diligence.
NorthEdge has backed the incumbent TKC management team in the buy-out. The team comprises commercial director, Chris Hazelhurst, finance director, Paul Arrowsmith, operations director, Dave Grayson and supply chain director, Brian Wade.
The deal also sees company founder Tom Kelly and director Hayley Kelly exit the business.
Founded in 1989, TKC currently employs 128 staff and operates out of 85,000 square-foot, purpose-built premises in Denton. The business provides kitchen retailers, manufacturers and local installers with a wide range of contemporary, classic and traditional doors and components. Since being established, the company has experienced strong revenue growth, with turnover reaching £19m in the year to September 2015.
Commenting on the deal Shoosmiths corporate partner, Kieran Toal said, 'We were delighted to be appointed by NorthEdge to support on this transaction and has been a pleasure working with them. Their investment in TKC a very successful, growth business is sure to pay dividends and will ensure that TKC, a regionally based firm, can go from strength to strength. Being appointed on our first deal for NorthEdge, is further testament to the firm's growing reputation for private equity work in the region and we very much hope to support NorthEdge on further transactions in the future.'
NorthEdge partner, Ray Stenton said: 'Kieran and the Shoosmiths team were instrumental in driving the deal forward to a successful conclusion. They demonstrated an excellent understanding of private equity market practice and those aspects of the deal that were important to NorthEdge as an investor as well as applying a strong solutions orientated and commercial approach. We are delighted with how the Shoosmiths team worked with us on the transaction.'
'What attracted us to TKC was the team's track record of delivering growth and the opportunities in the market. We have experience in the sector through our investment in Solidor and can see the huge potential for the business. The management team has an ambitious strategy and we are all very excited about TKC's next phase of growth.'
Assisting corporate partner Kieran Toal on the transaction was partner Lynn Knight, senior associates Damien Brown and Kelly Prestidge, associate Kiran Virk and trainee Rick Thomas (corporate); partner Liz Sweeney, senior associate Ruth Evans and trainee Ketan Mistry (banking); Kate Featherstone (tax); and senior associate Danielle Ingham and solicitor Katie Marsden (employment).
Shoosmiths' corporate team advises public and private companies, management teams, investors and debt providers through the business life cycle. Shoosmiths work with businesses from start-up and first round finance through to mergers and acquisitions, MBO and MBI transactions, development funding and on exits, by way of sale, listing or private equity investment.
Nationally, the corporate team is ranked in joint first place by deal volume in Experian's UK Deal Review and Advisor League Table. The team was recognised for its mergers and acquisitions expertise at the 2015 M&A Awards, winning the Law Firm of the Year category.