Bury based firm builds for future following deal
5th November 2008
Specialist plant and equipment hire business Garic, which employs 95 people in Bury, is set to continue its recent rapid growth after completing a deal with Bibby Holdings Ltd.
Garic designs, manufactures and hires its own innovative range of equipment which helps infrastructure and construction contractors address a range of environmental, security and health and safety issues.
Its products include environmentally protective fuel tanks, wheelwash equipment, interceptor drip trays, drum stores and a full range of welfare cabins for construction sites.
Established in 1983, Garic boasts an 800-strong client base which ranges from independent contractors to major multinationals such as Balfour Beatty, McAlpine, Laing O’Rourke and Carillion.
The business has been acquired for an undisclosed sum by Bibby Holdings, a specialist division of Bibby Line Group, one of the UK’s largest and fastest-growing privately owned companies which is based in Liverpool.
Bibby Holdings was set up to identify and acquire established, entrepreneurial and high growth potential businesses to further strengthen and diversify Bibby Line Group’s expanding portfolio, which spans support services across logistics, marine, offshore oil & gas, financial services and retail sectors.
Recent diversifying investments include the acquisition of Costcutter, Woodland Burial Parks and MHL Support, in addition to companies such as Bibby Ship Management being created with a new operation in the Ukraine.
The deal with Garic sees Bibby Holdings acquire the entire share capital of the company.
Existing shareholders, including founders Lorne and Gary Entwistle, will remain with the company in order to maintain its impressive growth rate, which has seen turnover double to £12 million over the last four years.
The transaction was led entirely by North West based advisers.
The management team of Garic was advised on the deal by Paul Stringer, corporate finance partner at Cowgill Holloway, and Chris Ross at George Davies Solicitors.
Bibby Holdings was advised by Anthony Booth at Grant Thornton and Gareth McIntegart at law firm DWF.
Lorne Entwistle, managing director of Garic, said: “This deal is great news for the business, our customers and our employees.
“Garic has secured the backing of a major private company which shares our vision, passion and enthusiasm extending our range of innovative products. This will provide us with additional expertise and experience which we can leverage to support our customer relationships.
“Bibby is fully supportive of the current structure of Garic and we look forward to working closely with them over the coming years.”
Cy Green, chief executive of Bibby Holdings, said: “Garic shares a number of Bibby Line Group’s core values such as innovation, integrity and customer service excellence, which makes it a strong fit for our growing and diverse portfolio of companies.
“As a private investor we have the flexibility to structure a deal which aligns the interests of all stakeholders to long-term value creation and we will provide ongoing funding and strategic input to support management’s ambitions.
“Bibby Holdings has funds available for future investments and will be looking at exciting opportunities to invest in businesses with excellent growth prospects.”
Paul Stringer, corporate finance partner at Cowgill Holloway, was lead advisor on the sale of the business. He said: “This acquisition will prove beneficial for both parties. Bibby Line Group has an excellent reputation to which Garic will add strength.
“For Garic, the acquisition will support the company’s growth plans within a larger group structure. The combined focus and determination of all parties working on the deal ensured expectations were achieved.”
This is the first deal that law firm DWF have advised Bibby Holdings on. DWF corporate partner Gareth McIntegart, said: “Completing the deal is a major achievement given the constraints in the current economic climate.
“However it illustrates what can be done with some creative thinking on the part of the client and advisers and a flexible approach from both sides. We wish Bibby all the best in its new business venture.”
Deal team details:
Equity – Bibby Holdings Ltd (Cy Green, Andrew Goody, David Bibby)
Advisors to Garic:
Cowgill Holloway (Paul Stringer)
Legals – George Davies Solicitors (Chris Ross)
Advisors to Bibby Holdings Ltd:
Grant Thornton (Anthony Booth)
Legals – DWF (Gareth McIntegart and Lorna Mitchell)
About Bibby Holdings Ltd:
Bibby Holdings is a specialist division of Bibby Line Group, one of the UK’s largest and fastest-growing privately owned companies. The Group has interests in a range of sectors including business support services, logistics, marine, offshore oil & gas, financial services and retail.
The company was founded by Liverpool entrepreneur John Bibby in 1807 and has its head office in Duke Street, Liverpool.
Bibby Holdings was set up to identify and acquire established, entrepreneurial and profitable UK domiciled businesses (with an enterprise value between £5 million and £100 million) to further strengthen and diversify Bibby Line Group’s expanding portfolio.
Bibby Holdings backs incumbent management teams with the ambition and ability to deliver long-term growth and value.
Bibby Holdings’ team combines the expertise of mergers and acquisitions professionals with experienced senior executives from a wide range of business backgrounds. Bibby Line Group expertise and experience is leveraged into acquired businesses, identifying synergies and sharing best practice across the portfolio.
Bibby Holdings’ ownership structure and culture promotes a unique relationship-based approach to acquisitions, enabling management teams to deliver growth strategies and maximise earnings potential.
The information was correct at time of publishing but may now be out of date.