Cattaneo Corporate Finance advises Silmid

Cattaneo Corporate Finance has advised the shareholders of Silmid on its sale to GracoRoberts of the US to forge the largest aerospace-focused and specification-driven specialty chemicals distributor around the globe.

Silmid’s key value proposition is the on-demand supply of small volume orders primarily via its full service B2B ecommerce website, combined with a range of value-added services including inventory management, product repackaging and the packing and shipping of hazardous materials. Its website provides a scalable and repeatable business model that will offer new procurement opportunities and a simple and fast buying experience for GracoRoberts’ customers. Silmid is based in Coleshill near Birmingham and has a turnover of £20 million.

Headquartered in Arlington, Texas, GracoRoberts is the single largest and most technically focused specialty chemicals distributor in the North American aerospace market, supplying complex engineered materials for aerospace OEM and MRO segments, composites, electronics, and other advanced manufacturing industries. It delivers superior engineered materials with support to thousands of customers from more than 65 countries and all seven continents around the globe. With nearly 30 years of experience providing growth capital to the aerospace, defence and federal services sectors, CM Equity Partners, the private equity sponsor of GracoRoberts, has supported the acquisition, continuing GracoRoberts’ strong track record of growth.

Silmid’s web-centric approach to distribution, coupled with a 24,000 square foot UK warehouse and world-class quality system, offers the companies’ combined supplier partners greater access to more distribution outlets and buyers in every country around the world. With approximately 200 combined employees, GracoRoberts and Silmid will continue to operate independently from each company’s corporate headquarters.

The Cattaneo team of Martyn Pilley and Scott Peters provided corporate finance advice to the shareholders of Silmid who received legal advice from Matt Worsnop of Leicester-based BHW Solicitors and the New York office of Day Pitney. They also received tax and accounting advice from West Midlands firms Parisi Tax and Eden Currie respectively.

Jason Caldwell, President and CEO of GracoRoberts, said:

“We are thrilled to have Andy Nickson and the Silmid team join us in becoming a global and digital leader in aerospace specialty chemicals distribution. Together we bring more solutions, expertise and innovation to the global aerospace community than either of us can do alone. Offering this next-level value to our customers and suppliers and innovating a traditional brick and mortar specialty chemicals distribution model is truly game changing, and we are excited about what we will achieve together.”

Andy Nickson, Operations Director of Silmid, said

“The Silmid vision is founded on a philosophy of Silmid First – being the go-to destination and leading source for products and information. Once we’ve earned the customer’s trust with a purchase, it is our responsibility to deliver on time and without error. That belief system and operational excellence is fully aligned with GracoRoberts, which is what makes this partnership such a natural fit, and we are honoured to join the GracoRoberts team.”

Martyn Pilley of Cattaneo commented:

“We have worked with Silmid for a number of years, over which time we have built up a detailed understanding of the business. Its ecommerce model has fuelled customer acquisition and impressive transactional growth such that the global pandemic has had limited impact on its operations. Our in-depth knowledge of the business allowed us to facilitate the transaction within six weeks of reaching Heads of Agreement, a phenomenal effort by both parties and the team of advisers led by a strong Midlands contingent.”