Deal summary
Dains Corporate Finance is pleased to announce that it has recently advised co-founders Neville Butler and Bob Rushton on the sale of Worcester Electrical Distributors Limited to RDCP Group.
Headquartered in Worcester, the firm was established in 1987 by Neville Butler and Bob Rushton and today employs 75 staff, with an annual turnover of £24million and an average revenue growth rate of 20%. Worcester Electrical operates from six branches offering over 6,000 lines and is a stockist for many market-leading brands of motor control gear and industrial automation products, including ABB, Finder, Omron, Moeller, Telemecanique, and Weidmuller. It also stocks quality brands such as MK, BG, and Fitzgerald for the electrical contractor and a range of other services, including lamp and tube recycling, energy saving surveys for lighting and power, and personalised workware.
The existing management team will be led by newly appointed Managing Director Paul Clunn, who will work closely with RDCP founders, Sameer Rizvi and Iryna Dubylovska, on Worcester Electrical’s future growth strategy. This latest deal forms part of RDCP Group’s buy-and-build strategy and vision to build the UK’s largest private company with a dominant presence in a variety of industries. RDCP now controls $450 million of investments across multiple sectors and employs 1,900 staff members in the UK.
Our Role
Having built a very successful business over the past 35 years, Neville and Bob decided approximately two years ago to create a succession plan in order to facilitate their retirement. Their goal was to realise the value that they had created to date and to ensure that the business was left in the hands of a buyer who would continue to further develop the business.
We worked closely with Neville and Bob to develop their exit plan, and as part of this process spent a considerable amount of time identifying an appropriate purchaser. Having received strong interest in the business from both trade and financial investors alike, we were attracted to the prospect of RDCP as a buyer for several reasons. RDCP’s model of being longer-term investors in businesses, backing strong incumbent management teams, and retaining the stability and culture that is embedded within a business made them stand out from the more traditional private equity model, and we quickly realised the benefits of choosing RDCP as the long-term investor in Worcester Electrical.
What our Client said
"Dains have been a great advisor for us and they were totally professional and offered vital guidance throughout the whole sale process. From the pre-deal work, preparing the information memorandum, and through to the legal stages, Dains were there offering advice and support. Any problems that arose were dealt with quickly and diligently – I highly recommend using Dains”
What we said
Rob Wilson, Corporate Finance Director at Dains said: “Neville and Bob have built a very successful business over the past 35 years, and decided to talk to Dains about retirement plans, and building a strategy to protect the legacy of Worcester Electrical. Their goal was to realise the value that they had created to date and to ensure that the business was left in the hands of a buyer who would continue to develop the business. I am delighted with the outcome we have achieved for Bob and Neville, which allows both to work towards retirement, confident that Worcester Electrical will benefit from new stewardship under Paul, Michelle, and RDCP.”
Sell-side advisers on the transaction
Corporate finance advice was provided to the shareholders by Rob Wilson and Constance Host of Dains Corporate Finance and tax advice by Adam Longmore of Dains Accountants. Legal advice was provided by Harrison Clark Rickerbys.
