We acted for C.P. Witter Limited, a traditional family owned and family operated business, on its disposal to Trimas Corporation Inc.
Incorporated in 1950 C.P. Witter is the UK’s leading towbar manufacturer, based in Deeside, Wales. Generating turnover of £13.5m and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of £1.5m, the C.P. Witter brand is synonymous with the highest standards of design, quality, safety and security for motorists and road users.
Our clients agreed to use our integrated approach with Brabners acting as legal advisor on the deal.
Brabners Corporate Finance had previously assisted C.P. Witter in assessing its strategic options, including advising on potential acquisitions, ahead of the shareholders ultimately deciding to sell the business.
Our approach to research and contacting potential acquirers alongside the ongoing process ensured that confidentiality regarding the Transaction was maintained throughout; this was a key concern of the Shareholders and Management, in order to preserve the brand and market position.
We engaged on an extensive research programme to highlight potential domestic, European and International acquirers. The result of our research was to identify potential acquirers across 12 different time zones. Included within this list was the ultimate acquirer, Trimas, a listed American organisation with a global structure.
We received four offers from potential acquirers. To assist the shareholders in appraising the offers received we worked collaboratively with Brabners to provide an analysis of commercial, financial and legal benefits and implications of each offer. Upon which the decision was made to proceed with Trimas.
Working closely with the Shareholders, we were able to assist in the preparation of a robust Due Diligence pack and manage the Legal, Financial and Commercial Due Diligence process effectively. The results were such that Due Diligence was confirmatory and no issues arose from the acquirer.
The legal negotiations for Trimas were being led from America whereas the commercial discussions were held with its Australian operations. This split process led to the legal negotiations being held ahead of the completion of the purchaser’s due diligence. Throughout these negotiations we advised and negotiated on key points on behalf of the shareholders, which ultimately enhanced the value achieved.
The outcome of our process delivered a positive result with Shareholder value c£2m in excess of Shareholder expectations and the initial offer price was protected through completion and post acquisition completion accounts. The price achieved for the Transaction was much higher than standard multiples being achieved in the industry.