According to Taylor, the acquisition announced today (October 18) would put the Droitwich-based companys future in safe hands and allow it to rapidly accelerate its plans for growth in both the UK and overseas.
London-based Sullivan Street said on its website that it had completed the acquisition after a five month process working with both Taylors management and its former owners, the private equity group ECI Partners. Taylor, formally known as Egbert H Taylor & Co. Ltd, was established as a family-run business in 1962, but was purchased by ECI Partners for an undisclosed sum in 2005 (see letsrecycle.com story).
The company claims to be the UK market leader in the design of four-wheeled steel waste and recycling collection systems, as well as having a growing process internationally. It describes its brand as being synonymous with quality, innovation and supply chain excellence.
New chief executive
Following the acquisition, David Williams who has worked in the Taylor management team since 2006, is now the company’s chief executive, while Peter Selkirk, who joined the company as chief executive when ECI Partners acquired it, moves to become chairman.
Taylor will continue to operate from its existing Oak Park headquarters, logistics centre and manufacturing site in the Worcestershire town of Droitwich. The company has a long term lease on the facilities and significant room for expansion at the site.
Commenting on the acquisition, Mr Williams said: “We have worked hard to develop a lean and competitive business, the task now is to move forwards with fresh investment and a new development and expansion plan.
“We have been fortunate to find a hands-on investor willing to get involved; it means that key decisions can be made faster, in turn making the company more flexible. With the market in flux we are now able to react very quickly to customer needs and opportunities, improving both customer service and business performance.”
Taylor contrasted its previous relationship with ECI a large investment company with London-based Sullivan Street, which would have more hands-on experience and day-to-day involvement.
Sullivan Street has already worked with Taylor as a consultancy, a situation highlighted by Mr Selkirk: “We are absolutely delighted to partner with Sullivan Street Partners. The team has been linked with Taylor in a consultancy role for some time now and this has meant they have a good understanding of both the business and the sector, which, linked with their hands-on analytical approach means they can add real value from day one.”
Sullivan Street
Sullivan Streets website details a portfolio of investments which ranges from baby product advice firm Baby Concierge to carbon accounting business Carbon River. The company is run by two partners, Layton Tamberlin and Richard Sanders.
Mr Sanders said: “Our existing involvement in environmental services companies helped to identify the Taylor Group as an attractive asset with a tremendous position in the UK. Peter Selkirk and his team have worked hard to position Taylor as an industry leader where they are ready to benefit from increasing sales in new and existing markets. The unique focus that Sullivan Street Partners provides will enable Taylor to rapidly accelerate its growth plans in both the UK and overseas”.
He added: “Taylor represents a superb platform for us to develop further within the recycling and environmental services business. We were particularly attracted by Taylor’s long established, excellent containers and its management team who are a key part of what we are backing.”
Financing
Detail of the financing of the Taylor deal on the Sullivan Street website reveals it was funded with debt from Indigo Capital, while it also brought in Oakfield Capital as equity partners prior to completion of the deal.
Indigo Capital is described as a mezzanine fund with a reputation for working with companies and management teams to deliver optimum outcomes throughout economic and trading environments, while Oakfield Capital is said to have a high level of operational expertise to support the management team, and a similar philosophy to Sullivan Street on committing time in addition to capital.
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