A team from Hammonds in Leeds, led by Jayne Aarons, advised NVM Private Equity on its exit from Stainton Metal Company Ltd, which was announced today.
The Teesside-based manufacturer of street lighting columns and telecommunications poles was sold to Valmont Industries of the US, for an undisclosed sum.
NVM Private Equity, which manages over £190 million of funds, is one of the UK’s leading independent private equity businesses and focuses on making equity investments of up to £10 million in unquoted UK companies.
The sale has delivered a return of up to 3.3 times money for NVM and an initial IRR of 18.5%, potentially increasing to over 20% following a successful earn out.
NVM originally invested in the business in October 2001, which it acquired from Canada’s International Utility Structures Inc. Stainton is ranked number one in the UK market, and has seen sales increase from £10.8 million in 2002 to £15.9 million in 2008, having capitalised on a correction in under spending on lighting and infrastructure in the UK.
This is NVM’s fourth successful exit and ninth deal in total so far this year.
Corporate Senior Associate Jayne Aarons led the instruction for Hammonds, assisted by Associate Paul Mann. Tax advice was provided by Senior Associate Peter Morley.
Jayne Aarons said: "In light of the current domestic and international markets the successful disposal of Stainton to Valmont is a testament to the strength of the business and its management and its potential going forward."
Although the Birmingham office has acted for NVM in the past, this was the first instruction for the Leeds office.
For further information contact:
Samantha Rey, Communications Manager for Hammonds LLP, on 020 7655 1397 or email: firstname.lastname@example.org
In May 2008, international law firm Hammonds became a limited liability partnership. Hammonds LLP and its affiliated undertakings has offices in Birmingham, Leeds, London and Manchester in the UK, and in Berlin, Brussels, Beijing, Hong Kong, Madrid, Munich and Paris.