The sale of Silmid to GracoRoberts of the US to forge the largest aerospace-focused and specification-driven specialty chemicals distributor around the globe. Silmid is an on-demand supplier of small volume orders primarily via its full service B2B ecommerce website, which it combines with a range of value-added services including inventory management, product repackaging and the packing and shipping of hazardous materials. It has turnover of £20 million and is based in Coleshill near Birmingham. Silmid’s website provides a scalable and repeatable business model that will offer new procurement opportunities and a simple and fast buying experience for GracoRoberts’ customers. Headquartered in Arlington, Texas, and backed by CM Equity Partners of New York, 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.
OUR ROLE:
Following a five year close working relationship with Silmid, and with interest having been expressed by potential buyers, we were appointed to manage a process in which we reviewed the strategic rationale and financial capacity of a shortlist of potential partners, advised on the presentation to them of commercial and financial information and, following management presentations, solicited letters of intent from each party against a detailed criteria in order to allow us to analyse and compare the options available to the Silmid shareholders. We then led negotiations with the competing buyers, all large cross-border counterparties, to reach Heads of Agreement with the preferred buyer. Our in-depth knowledge of our clients’ business allowed us to manage a tight due diligence and legal process to facilitate completion of the transaction within six weeks and ahead of the UK fiscal budget and any potential changes to the capital gains tax regime. We also advised on the reinvestment by one of our clients in GracoRoberts’ stock as part of its equity fundraising in support of the transaction.
WHAT OUR CLIENT SAID:
‘We have worked with Cattaneo for a number of years and have, without fail, found their advice to be both technically excellent and commercially astute. Their in-depth understanding of our business model, financial data and shareholder objectives allowed them to shape a deal which was fully negotiated prior to granting exclusivity and then drive the process in the most efficient manner to deliver the deal as proposed. I cannot thank them enough for their support over the years and through this transaction in particular.’
Andy Nickson, Director, Sil-Mid
