Endless has sold its stake in Acenta Steel, the UK’s largest independent processor and distributor of bright steel bars, for an undisclosed value.
Headquartered in Willenhall in 2012 Acenta achieved turnover of £82 million across its six sites in the UK with 343 employees.
Other existing management shareholders have bought out Endless, the UK mid-market private equity house that specialises in acquiring non-core businesses from large corporate groups.
The transaction provides Endless with a return of approximately six times its investment in Acenta Steel, which it acquired from its former US owners in January 2011. Acenta Steel has performed exceptionally well in testing market conditions over the past two years and achieved significant sales growth and paid down debt.
Tarlok Singh, CEO, and Colin Mills, CFO, led the management buyout, together with support from long-term funding partner GE Commercial Finance.
Mr Singh said: “I am absolutely delighted with the deal to take this prestigious business into private ownership. I would like to personally thank Endless for their outstanding professionalism, integrity and faith in our business, which is contrary to many of the popular myths reported about private equity firms. They invested at a time when others would not and fully deserve the outstanding investment return that they have achieved.”
Darren Forshaw, partner at Endless, said: “Our investment in Acenta Steel just over two years ago took place when its US owners viewed the business as non-core and the company faced some difficult challenges due to the volatility in worldwide steel demand. We recognised the long term prospects for the business and also the strength of its market position and its people.
‘‘Tarlok and Colin have led the business through an unprecedented period of success and it is now in a great position to achieve long term sustainable growth.”