Corporate finance adviser Orbis Partners has teamed up with law firm Freeth Cartwright to advise Elite Creation’s first acquisition of 2010 – less than a month after spearheading the firm’s multi-million pound management buyout.

The two firms advised the London and Hong Kong-based fashion accessory supplier on the purchase of Phase Two Accessories in Fulham, a company with a £5 million annual turnover which supplies handbags to UK mid-market retailers. The price paid by Elite was not revealed.

Nitesh Sakhrani, chief executive of Elite Creations, said: "Phase Two is a great addition to our portfolio and, in the current tough retail environment, it makes Elite a much more solid supplier brand.

"Today we are one of the largest accessory suppliers in the country and we are particularly grateful to both Freeth Cartwright and Orbis Partners for their outstanding professional guidance in what has been a particularly dynamic few months for us all."

Elite Creations has an annual turnover of about £20 million and supplies more than 30 UK retail groups, as well as exporting to customers in Spain, Germany, Scandinavia and the Middle East.

Among the accessory ranges that the company sells are bags, belts, jewellery, eyewear, hats, gloves, scarves and footwear.

In the first half of 2010, the business will move into ultra modern premises in north-west London, where its product will be showcased.

Lee Clifford, corporate finance partner at Freeth Cartwright’s Birmingham office, said: "Elite has acquired a well established business, renowned for providing high-quality products through its in-house design team.

"Phase Two should not only be a sound strategic fit for Elite, it should also be a profitable one."

Gary Ecob, partner at Orbis Partners, said: "We are delighted to have supported Nitesh and his team in what I hope will be the first of many acquisitions.

"It is good to see an international company performing extremely well in such challenging economic conditions, and very rewarding for the Midlands-based advisory community to be selected to work with such forward-thinking international businesses."

Elite Creations is one of a number of corporate finance deals carried out in recent months by Freeth Cartwright’s Birmingham office.

Further activity includes advising the Nottingham office of Lloyds Development Capital on the completion of the £17 million MBO of Yorkshire-based bird food manufacturer and distributor Cranswick Pet Products and marine and aquatic products supplier Tropical Marine Centre.

Lee Clifford and Freeth Cartwright banking partner Phil Baigent have also advised the Birmingham office of Maven Capital Partners on its £10 million cash injection into West Midlands-based Lawrence Recycling and Waste Management. Orbis Partners have also had a busy start to the year – the management buyout of Elite in February, which was funded by HSBC bank and HSBC Invoice Finance, was the third deal of the year for the firm.